Market Efficiency

Market Efficiency for the CFA Level 1 Exam

Are markets efficient or just a wild rollercoaster ride of unpredictability? Let’s explore market efficiency and find out if the financial markets have a method to their madness!

The Concept of Market Efficiency

Ever wondered why you can’t seem to outsmart the stock market? It’s all about market efficiency – the speed and accuracy of how information affects asset prices. We dive into why some investors swear by passive strategies while others believe they can capitalize on inefficiencies.

► Grasp the essence of market efficiency and find your investing style here.

Efficient Market Hypothesis

Are markets really efficient? That’s where the Efficient Market Hypothesis (EMH) comes in! We delve into the three forms of EMH, how they’re tested, and what this means for active and passive investing strategies.

► Explore the EMH and see how it impacts your investing game here.

Market Anomalies

Ever stumbled upon a pattern that seemed to beat the market? Welcome to the land of market pricing anomalies! We’re uncovering the three main categories of these peculiarities – time-series, cross-sectional, and other anomalies – and why they might not be your golden ticket to abnormal returns.

► Decode the mystery of market anomalies and rethink your investment strategies here.

Introduction to Behavioural Finance

Are investors really rational? Let’s delve into behavioral finance, where we question traditional finance theories and acknowledge that investors can sometimes be, well, irrational. We’ll explore intriguing behaviors and biases such as loss aversion and overconfidence, and how they relate to market efficiency.

► Buckle up and discover the quirky side of investing in behavioral finance here.