There is No Chaos in Stock Markets

Jamal Munshi

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

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Date posted: June 13, 2014  

Suggested Citation

Munshi, Jamal, There is No Chaos in Stock Markets (June 11, 2014). Available at SSRN: https://ssrn.com/abstract=2448648 or http://dx.doi.org/10.2139/ssrn.2448648

Contact Information

Jamal Munshi (Contact Author)
Sonoma State University ( email )
1801 East Cotati Avenue
Rohnert Park, CA 94928
United States
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