There is No Chaos in Stock Markets
Sonoma State University
June 11, 2014
The elegant simplicity of the Efficient Market Hypothesis (EMH) is its greatest weakness because human nature demands complicated answers to important questions and Chaos Theory readily fills that demand for complexity claiming that it reveals the hidden structure in stock prices. In this paper we take a close look at the Rescaled Range Analysis tool of chaos theorists and show that their findings are undermined by weaknesses in their methods.
Number of Pages in PDF File: 14
Keywords: rescaled range analysis, fractal, chaos theory, statistics, Monte Carlo, stock returns
Date posted: June 13, 2014
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