Author

  • Amaresh Das

    • Southern University at New Orleans, New Orleans, LA, USA
    • United States

Abstract

Efficient market theory states that financial markets can process information instantly. Empirical observations have challenged the stricter form of the efficient market hypothesis (EMH). These empirical observations and theoretical considerations show that price changes are difficult to predict if one starts from the time series of price changes. This paper provides an explanation in terms of algorithmic complexity theory of Kolmogorov that makes a clearer connection between the efficient market hypothesis and the unpredictable character of stock returns.

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References

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How to Cite

Das, A. (2011). Martingales, Efficient Market Hypothesis and Kolmogorov’s Complexity Theory. Information Management and Business Review, 2(6), 252-258. https://doi.org/10.22610/imbr.v2i6.905

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Copyright (c) 2011 Amaresh Das (Author)

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Section

Research Paper

Published in

Vol. 2 No. 6 (2011) Leadership, Capital Markets & Digital Enterprise View issue contents

Published

2011-06-15

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