What does a really efficient market look like?


See on Scoop.itData Nerd’s Corner

The raison d’être of hedge funds is to make the markets efficient. Or at least that’s one of the raisons d’être, the others being 1) to get rich and 2) to leave early on Fridays in the summer (resp…

Carla Gentry CSPO‘s insight:

I am now prepared, as you hopefully are as well, to question what good this all does for people like us, who are not privy to the kind of expensive information required to make these trades. From our perspective, nothing happens, the price fluctuates, and the market is deemed efficient. Is this actually an improvement over the alternative version where something happens, and then the price adjusts? It’s an expensive arms race, taking up vast resources, where things have only become more opaque

See on mathbabe.org

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