Category «Finance»

Market Efficiency Hypothesis

The market efficiency hypothesis, also known as the Efficient Market Hypothesis (EMH), is a theory in financial economics that suggests that asset prices fully reflect all available information at any given time. The implications of this hypothesis are profound, as it implies that it is impossible to consistently achieve higher returns than the overall market …

Derivative

The term derivative refers to a type of financial contract whose value/structure is derived from some other asset. It is dependent on an underlying asset, group of assets, or benchmark. A derivative is set between two or more parties that can trade on an exchange or over-the-counter (OTC). CASH Price/ SPOT Priece The price of underlying asset is …