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Efficient Market/Random Walk Joke
Posted By Barry Ritholtz On July 9, 2007 @ 9:58 am In Apprenticed Investor,Hedge Funds,Investing,Markets,Psychology,Quantitative | Comments Disabled
Here’s my variation on the classic EMH joke :
Two Economics professors are walking back to their offices after giving a lecture on the Random Walk  of stock prices.
"Look!" says one of the academics, "There’s $1.7 billion dollars!"
"Nonsense!" says the other. "The market efficiency hypothesis states that security prices fully reflect all available information. That money is impossible."
"Schmucks!" laughs Jim Simmons of Renaissance Technologies. He picks up the money and goes back to his office.
You may now return to your previously scheduled belief system.
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2007/07/efficient-marketrandom-walk-joke/
URLs in this post:
 classic EMH joke: http://alephblog.com/?p=160
 Random Walk: http://www.amazon.com/exec/obidos/ASIN/0393325350/thebigpictu09-20
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