Contents
Part One: Markets, Return, and Risk
Chapter 2: The Deficient Market Hypothesis
The Efficient Market Hypothesis and Empirical Evidence
The Market Is Collapsing; Where Is the News?
The Disconnect between Fundamental Developments and Price Moves
Price Moves Determine Financial News
Is It Luck or Skill? Exhibit A: The Renaissance Medallion Track Record
The Flawed Premise of the Efficient Market Hypothesis: A Chess Analogy
Some Players Are Not Even Trying to Win
Right for the Wrong Reason: Why Markets Are Difficult to Beat
Diagnosing the Flaws of the Efficient Market Hypothesis
Why the Efficient Market Hypothesis Is Destined for the Dustbin of Economic Theory
Chapter 3: The Tyranny of Past Returns
S&P Performance in Years Following High- and Low-Return Periods
Implications of High- and Low-Return Periods on Longer-Term Investment Horizons
Is There a Benefit in Selecting the Best Sector?
Hedge Funds: Relative Performance of the Past Highest-Return Strategy
Why Do Past High-Return Sectors and Strategy Styles Perform So Poorly?
Wait a Minute. Do We Mean to Imply . . .?
Chapter 4: The Mismeasurement of Risk
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