Canonical · Finance Theory · Paper
The Efficient Market Hypothesis
Eugene Fama · 1970
"Fama formalized that in an efficient market, prices already reflect all available information of that form — weak, semi-strong, or strong — so consistently beating the market requires either private information or a risk premium, not just public analysis."
Fama's 1970 review made a stark claim: if markets are efficient, the chart pattern you think you see has already been arbitraged away before you saw it.
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Up NextSuggested: Continues the theme of Finance Theory
The Kelly Criterion & Position Sizing
"Kelly derived the fraction of bankroll to bet to maximize long-run logarithmic growth — bet too little and you compound slowly, bet too much and a single bad run wipes out the geometric advantage even with a positive edge."
John L. Kelly / Edward Thorp · PaperContinue→