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Straight from the mouth of Fama: “efficient Market Hypothesis is a model. All models are wrong. Some models are useful.”

If you don’t/won’t understand the difference between the real world and a model of the real world, there is nothing more to say.



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How’s this for a source?

https://m.youtube.com/watch?v=bM9bYOBuKF4


I did not find that quote in the linked-to interview.

The closest is at https://youtu.be/bM9bYOBuKF4?t=148 "That's the statement of the hypothesis, but it's a model, it's not completely true, no models are completely true. They're approximations to the world. The question is, for what purposes are they a good approximation. As far as I'm concerned, they're a good approximation for almost every purpose."

I think you've combined that with the aphorism commonly associated with George Box - https://en.wikipedia.org/wiki/All_models_are_wrong .

If the interview on YouTube contains your quote, then please link to or give the timestamp. I only skimmed the closed-captions.


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Are you saying Fama didn’t come up with the efficient market hypothesis? He got the Nobel prize for it.

Who came up with it?


I'm talking about the line you quoted. At this stage I'm convinced you're intentionally equivocating.




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