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Affichage des articles du octobre, 2018

Criticism of Eugene Fama's theory : Efficient market hypothesis

I recently had the opportunity to take an interest in Eugène Fama's work on the theory of market efficiency. It is a theory where markets are categorized into three types: the weak form efficiency, the semi-strong form efficiency and the strong form efficiency. A week form efficiency market represents a market where share prices reflect all the information contained in the price history, so it will be impossible to obtain abnormal returns by building strategies based on the price history. A semi-strong efficiency market reveals that share prices reflect only public information and not "internal information". Finally, a "perfect market" or a market of strong form efficiency is a market where share prices reflect all available information, both public and private. In this last form of efficiency, it therefore becomes impossible to make profits other than by chance since it is impossible to predict future prices. However, after reading this theory, I wondered whet...
Dragon's Den : Look After My Bills I recently watched the Sunday, August 21 episode of the English show « Dragon’s Den » which is a show where entrepreneurs present their solutions to « dragons », experienced investors to convince them to invest money in their projects, in exchange for shares in their companies. I then became interested in a particularly sensitive and decisive subject for a large proportion of households in England: the cost of energy. Indeed, it seems that the cost of gas, oil, water and coil has risen sharply, particularly since the beginning of the millennium (for instance, gas price was multiplied by 3 between 2004 and 2012), representing an increasingly large part of households budgets (source:  https://www.energyinst.org) . To respond to this substantial increase, two investors (Will Hudson and Henry de Zoete) propose a solution, Look After My Bills, which seems to be beneficial for the daily household budget: the project is to enco...