EMH

In financial economics, the efficient-market hypothesis (EMH) posits that asset prices reflect all

available information. Because market prices should only respond to new information, it is

difficult to continually "beat the market" on a risk-adjusted basis.

Because the EMH is based on risk adjustment, it can only produce testable predictions when

used in conjunction with a specific risk model.

As a result, since the 1990s, financial economics research has concentrated on market

anomalies, or deviations from certain risk models.