ABSTRACT
The Efficient Market Hypothesis (EMH) [186, 189] states that all information available about a financial asset is already re flected in its price, and that therefore, no other information can be gathered that will lead to useful predictions. Claims of su perior returns by some portfolio managers are conciliated in the EMH picture by the Capital Asset Pricing Model, stating that these managers are simply receiving, on average, a premium for accepting a higher level of risk. According to EMH, attempts to time the market are a waste of time.
