Efficient Market/Random Walk Joke

Monday, July 09, 2007 | 09:58 AM

Here's my variation on the classic EMH joke:

Two Economics professors are walking back to their offices after giving a lecture on the Random Walk of stock prices.

"Look!" says one of the academics, "There's $1.7 billion dollars!"

"Nonsense!" says the other. "The market efficiency hypothesis states that security prices fully reflect all available information. That money is impossible."

"Schmucks!" laughs Jim Simmons of Renaissance Technologies. He picks up the money and goes back to his office.


You may now return to your previously scheduled belief system.

Monday, July 09, 2007 | 09:58 AM | Permalink | Comments (6) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00e0098ec7fb8833

Listed below are links to weblogs that reference Efficient Market/Random Walk Joke:

Comments

Thanks for the link, Barry. Mr. Simons should make the EMH academics distinctly uncomfortable... a very bright guy who has hired some of the best talent out there.

Posted by: David Merkel | Jul 9, 2007 11:00:20 AM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner