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Efficient Market Hypothesis

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David1717 | 07:32 Sun 06th Oct 2013 | Personal Finance
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How to demonstrate that if you expect that a buyer in t=1 only wants to pay the fundamental value (P zero) in that time, your own willingness to pay for the stock has to be equal to the fundamental value in t=0?
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factor-fiction
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This is worth reading http://www.palan.biz/academic/documents/palan_2004-08_thesis-efficient_markets.pdf
09:01 Sun 06th Oct 2013
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Well you wouldn't want to pay more at t=0 than you know the buyer will pay at t=1
08:52 Sun 06th Oct 2013
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Do you know which version of the hypothesis are you considering: "weak", "semi-strong" or "strong"?
08:57 Sun 06th Oct 2013
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This is worth reading
http://www.palan.biz/academic/documents/palan_2004-08_thesis-efficient_markets.pdf
09:01 Sun 06th Oct 2013

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