The modern financial market theory (MFMT) – based on the efficient market hypothesis, rational expectation theory, and … modern portfolio theory – has become the standard approach in financial market economics. In this article, the MFMT will be … critically ­reviewed using the logic of human action (or: praxeology) as an epistemological meta­theory. It will be shown that …

deductive theory based on simplified rationality of the physical world. The behaviour of the markets cannot be derived from … e.g. the CAPM. SIM and MIM frameworks. The multifractal view of e.g. Mandelbrot concerning the market behaviour. has …