There is No Chaos in Stock Markets

14 Pages Posted: 13 Jun 2014

Date Written: 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.

Keywords: rescaled range analysis, fractal, chaos theory, statistics, Monte Carlo, stock returns

Suggested Citation

Munshi, Jamal, There is No Chaos in Stock Markets (June 11, 2014). Available at SSRN: or

Jamal Munshi (Contact Author)

Sonoma State University ( email )

1801 East Cotati Avenue
Rohnert Park, CA 94928
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
PlumX Metrics