Arbitrage involves entering into financial transactions to obtain risk-free profits by leveraging differences in interest rates, exchange rates, or commodity prices between different markets.
The Efficient Market Hypothesis (EMH) is a financial theory suggesting that asset prices reflect all available information, making it nearly impossible to consistently achieve higher returns than average market returns.
The Efficient Markets Hypothesis (EMH) posits that at any given time, asset prices in financial markets reflect all available information. This theory suggests that it is impossible for investors to either consistently make above-average returns or predict future market movements based on information that is already publicly available.
Neoclassical economics is a school of economic theory that flourished from about 1890 until the advent of Keynesian economics and asserts that market forces lead to efficient allocation of resources and full employment.
Partial-equilibrium analysis is an approach in economic analysis that focuses only on the part of the economy affected by the factors being studied, isolating it from the rest of the economy to better understand impact.
The Random Walk Theory posits that the movement of stock and commodity futures prices is inherently unpredictable, given that past price movements cannot accurately forecast future price trends.
