ABSTRACT
Eugene Fama himself was well aware of competing financial market hypotheses. In the 1960s, he had reviewed and criticized the work on fractal market pricing theory, or the Fractal Market Hypothesis (FMH), by Mandelbrot, which emphasizes the empirically observable and well-corroborated self-similarity of power laws of financial pricing, in particular in stock markets (Fama, 1965). Such timedependent self-similarity of empirical financial pricing laws contradicts the EMH based on martingale theory, as explained in this chapter.
