• Corpus ID: 16191502

Market Rationality: Efficient Market Hypothesis versus Market Anomalies

@article{Yalcin2010MarketRE,
  title={Market Rationality: Efficient Market Hypothesis versus Market Anomalies},
  author={Kadir C. Yalcin},
  journal={European Journal of Economic and Political Studies},
  year={2010},
  volume={3},
  pages={23-38}
}
  • Kadir C. Yalcin
  • Published 2010
  • Economics
  • European Journal of Economic and Political Studies
Market efficiency theory suggests that market is rational and provides correct pricing. That is, the current prices of securities are close to their fundamental values because of either the rational investors or the arbitragers' buy and sell action of underpriced or overpriced stocks. On the other hand, observed market anomalies have a challenge for this argument. They claim that irrational investment activities and the arbitrage opportunities' being limited in markets cause some market… 
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