undefined | Better HN

0 pointssmitty1e7mo ago0 comments

For a sufficiently large market, over time, one would expect the Central Limit Theorem to kick in and filter the noise.

The "Efficient Market" can be seen as an Eternal Steady State, neglecting all transient signals.

0 comments

chii7mo ago

but doesnt the central limit theorem require each event to be i.i.d. ?

I dont think the efficient market is a result of the central limit theorem, since each transaction affecting the market is not independent of each other.

smitty1eOP7mo ago

Fair point. Thank you.

j / k navigate · click thread line to collapse

0 comments

chii7mo ago

but doesnt the central limit theorem require each event to be i.i.d. ?

I dont think the efficient market is a result of the central limit theorem, since each transaction affecting the market is not independent of each other.

smitty1eOP7mo ago

Fair point. Thank you.

j / k navigate · click thread line to collapse