Alajbeg, Denis; Bubas, Zoran; Sonje, Velimir - In: Financial Theory and Practice 36 (2012) 1, pp. 53-72
Despite many “refutations” in empirical tests, the efficient market hypothesis (EMH) remains the central concept of financial economics. The EMH’s resistance to the results of empirical testing emerges from the fact that the EMH is not a falsifiable theory. Its axiomatic definition shows...