'Capital market theory after the efficient market hypothesis' on VOX
VOX, 5 October 2009
Capital market theory after the efficient market hypothesis Paul Woolley and Dimitri Vayanos Have capital market booms and crashes discredited the efficient market hypothesis? This column says yes and suggests a new model that explains asset pricing in terms of a battle between fair value and momentum driven by principal-agent issues. Investment agents’ rational profit seeking gives rise to mispricing and volatility... to continue reading please click here
