Re: [Pen-l] FYI: Skidelsky on Keynes

["Jim Devine" <jdevine03@xxxxxxxxx>]

me:
>> Instead of describing perfect foresight about the gyrations of
>> asset prices, the EMH is only right _on average_ (under the assumption
>> of Gaussian randomness, etc.) with given information about underlying
>> asset values.

Julio Huato <juliohuato@xxxxxxxxx> wrote:
> You probably meant that the asset prices (not the EMH) are only right
> on average.  That's right.

Right. The EMH says that asset prices are right on average (given
information about underlying asset values).

Note, however, that the EMH is based on an unrealistic (Gaussian) view
of probability with no true (Knight/Keynes) uncertainty or "black
swans."
-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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