For those of you interested in financial markets, we have an upcoming talk and a fall seminar that may be of interest. First up, this Monday, Grinnell College professor, Mark Montgomery, will give a lecture about the ins and outs of “The Notorious Efficient Market Hypothesis,” as he calls it.
The efficient market hypothesis is essentially in two parts: First, that all publicly available information is immediately internalized into the extant stock price. Immediately is pretty fast, so it’s tough to beat the market. So, secondly, it is not possible to earn above average returns without taking above average risks — a disheartening message for any would-be financiers. I’m certain that Professor Montgomery will give us a lively talk.
The talk is Monday at 4:30 p.m. in Seitz 102.
For those of you interested in learning about how economists think about investments should consider the Investments directed study that we will offer in the fall of 2015. In the next few weeks we will roll out our 2015-16 schedule, so watch this space for details.