efficient market hypothesis
E96714
The efficient market hypothesis is a financial theory asserting that asset prices fully and immediately reflect all available information, making it impossible to consistently achieve returns above the market average through information-based trading.
All labels observed (3)
| Label | Occurrences |
|---|---|
| efficient-market hypothesis | 5 |
| efficient market hypothesis canonical | 2 |
| “Efficient Capital Markets: A Review of Theory and Empirical Work” | 1 |
How this entity was disambiguated
This entity first appeared as the object of triple T827218 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: efficient market hypothesis Context triple: [Chicago School economics, notableConcept, efficient market hypothesis]
-
A.
Black–Scholes model
The Black–Scholes model is a fundamental mathematical framework in financial economics for pricing options and other derivatives by modeling asset prices as stochastic processes.
-
B.
Triumph of the Market
Triumph of the Market is a critical work by economist and media analyst Edward S. Herman that examines the social and political consequences of neoliberal, market-driven policies.
-
C.
neoclassical economics
Neoclassical economics is a dominant school of economic thought that explains prices, output, and income distribution primarily through marginal analysis, individual rational choice, and market equilibrium.
-
D.
Ricardian equivalence
Ricardian equivalence is an economic theory proposing that consumers anticipate future taxes implied by government borrowing and therefore adjust their saving so that deficit-financed tax cuts do not affect overall demand.
-
E.
IS-LM model
The IS-LM model is a macroeconomic framework that depicts the interaction between the goods market and the money market to determine equilibrium output and interest rates.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: efficient market hypothesis Target entity description: The efficient market hypothesis is a financial theory asserting that asset prices fully and immediately reflect all available information, making it impossible to consistently achieve returns above the market average through information-based trading.
-
A.
Black–Scholes model
The Black–Scholes model is a fundamental mathematical framework in financial economics for pricing options and other derivatives by modeling asset prices as stochastic processes.
-
B.
Triumph of the Market
Triumph of the Market is a critical work by economist and media analyst Edward S. Herman that examines the social and political consequences of neoliberal, market-driven policies.
-
C.
neoclassical economics
Neoclassical economics is a dominant school of economic thought that explains prices, output, and income distribution primarily through marginal analysis, individual rational choice, and market equilibrium.
-
D.
Ricardian equivalence
Ricardian equivalence is an economic theory proposing that consumers anticipate future taxes implied by government borrowing and therefore adjust their saving so that deficit-financed tax cuts do not affect overall demand.
-
E.
IS-LM model
The IS-LM model is a macroeconomic framework that depicts the interaction between the goods market and the money market to determine equilibrium output and interest rates.
- F. None of above. chosen
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
economic theory
ⓘ
financial theory ⓘ hypothesis in finance ⓘ |
| associatedWith | Chicago School of Economics ⓘ |
| assumes |
competition among investors drives prices to equilibrium
ⓘ
information is freely and quickly available to market participants ⓘ many rational profit‑maximizing investors ⓘ |
| contrastsWith |
behavioral asset pricing
ⓘ
value investing philosophies that assume mispricing ⓘ |
| coreClaim |
asset prices fully reflect all available information
ⓘ
it is impossible to consistently achieve abnormal risk‑adjusted returns using available information ⓘ |
| criticizedBy | behavioral finance ⓘ |
| criticizedFor |
assumption of fully rational investors
ⓘ
difficulty reconciling with market anomalies ⓘ inability to fully explain asset price bubbles ⓘ |
| field |
asset pricing
ⓘ
economics ⓘ financial economics ⓘ |
| formulatedIn | 1960s ⓘ |
| hasForm |
semi‑strong form efficiency
ⓘ
strong form efficiency ⓘ weak form efficiency ⓘ |
| hasInfluenceOn |
corporate finance decisions
ⓘ
regulation of financial disclosure ⓘ securities regulation debates ⓘ |
| implies |
active portfolio management cannot systematically beat passive strategies after costs
ⓘ
fundamental analysis cannot consistently outperform the market on a risk‑adjusted basis ⓘ no free lunch in financial markets ⓘ prices follow a martingale or random walk process under certain conditions ⓘ technical analysis cannot consistently outperform the market ⓘ |
| inAcademicLiterature |
Journal of Finance
ⓘ
Journal of Financial Economics ⓘ |
| influenced |
development of exchange‑traded funds
ⓘ
development of index mutual funds ⓘ |
| predicts |
abnormal returns are random and not persistent
ⓘ
no predictable excess returns from public information ⓘ |
| proposedBy |
Eugene F. Fama
ⓘ
linked to:
Eugene Fama
|
| relatedConcept |
capital asset pricing model
ⓘ
modern portfolio theory ⓘ no‑arbitrage principle ⓘ random walk theory ⓘ |
| semiStrongFormDefinition | all publicly available information is fully reflected in current prices ⓘ |
| strongFormDefinition | all information, public and private, is fully reflected in current prices ⓘ |
| testedBy |
anomaly research
ⓘ
event studies ⓘ return predictability studies ⓘ |
| usedIn |
design of index funds
ⓘ
passive investment strategies ⓘ |
| weakFormDefinition | all information contained in past prices is fully reflected in current prices ⓘ |
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: efficient market hypothesis Description of subject: The efficient market hypothesis is a financial theory asserting that asset prices fully and immediately reflect all available information, making it impossible to consistently achieve returns above the market average through information-based trading.
Referenced by (8)
Full triples — surface form annotated when it differs from this entity's canonical label.
linked to: efficient market hypothesis
linked to: efficient market hypothesis
linked to: efficient market hypothesis
subject linked to:
Fama
linked to: efficient market hypothesis
linked to: efficient market hypothesis
linked to: efficient market hypothesis