what is market inefficiency - page 7

 
Yes, they come up with all sorts of theoretical theories. They should not get their practical eye on the very practical essence of the real market and start practising the practicalities.
 
Aleksey Nikolayev:
Yes, they come up with all sorts of theoretical theories. It would be better to penetrate into the very practical essence of the real market with a practical eye and start practicing.

You've got a lot on your mind...

With that logic, the director of AvtoVAZ should exclusively drive a VAZ model - as practice shows, it does not work

unfortunately, society is built that way, so some people write and justify theoretical material, and with due diligence reap laurels, while the flipside is foul language for those who try to apply these developments in practice ... including VAZ cars

)))

 
Igor Makanu:

the efficient market hypothesis (and not the theory) predates arima (1970).

The efficient market hypothesis (not theory) appeared before arima (1970), with assumptions as early as 1900.

The hypothesis is because a lot of paradoxes follow from the definition, and it is still alive because no one has been able to formulate it better.

 
TheXpert:

the efficient market hypothesis (and not the theory) predates arima (1970).

The hypothesis (not theory) of an efficient market appeared before arima (1970), with assumptions as early as 1900.

The hypothesis is because a lot of paradoxes follow from the definition and it is still alive because nobody has managed to formulate it better.

I could be wrong, but the concept of hypothesis is not fully confirmed in practice? - Usually a hypothesis allows you to justify certain points that could not be solved practically?

 
Igor Makanu:

I could be wrong, but is the concept of a hypothesis not fully proven in practice? - Usually a hypothesis allows to justify certain points that could not be solved practically?

For a hypothesis to be called a theory, it must meet certain requirements, at least in the scientific sense.

I think the word theory is attached because of the "Dow Theory" which directly mentions the hypothesis.

 
TheXpert:
for a hypothesis to be called a theory, it must meet certain requirements, at least in the scientific sense

yes

but you understand that even Einstein's theory is shaky on unsupported assumptions, don't you?


imho, the scientific world, 50% is a theory which allows to develop models for practice, BUT with certain assumptions, another question is that all incomprehensible points of use of these theoretical findings are reduced to the assumption that originally it was a hypothesis

 
Igor Makanu:

But you do realise that even Einstein's theory is shaky on unconfirmed assumptions, don't you?

A theory must have a predictive power.
 

In the case of the EMH we were talking about the concept of "hypothesis", which is what is meant in the " statistical hypothesis testing" section of the matstat. This is where the "null hypothesis", "alternative hypothesis" etc. However, over time it became clear that it could not be formulated in this form and even its creator Eugene Fama somewhat cooled to it. But then this hypothesis migrated to science-pop and it's on...)

 
TheXpert:
the theory must have a predictive ability.

no

theory must be confirmed by practice, of course, it takes time to work out practical results

at least the theory of digital automata is pure practice, everything works and develops for many years

which, unfortunately, cannot be said of BP evaluation, and to the topic of the topic - the efficient market, so far only theory explains only why mathematical research does not work

 
TheXpert:

the efficient market hypothesis (and not the theory) predates arima (1970).

The efficient market hypothesis (not theory) appeared before arima (1970), with assumptions as early as 1900.

The hypothesis is because a lot of paradoxes follow from the definition, and it is still alive because no one has been able to formulate it better.

You are out of your depth too))) Arima and Sarima can only learn well on a stationary, i.e. inefficient in terms of market concepts of data. So all appropriate)))))