If You Can't Beat 'Em, Join 'Em - Show 105

Wednesday, November 20, 2013 4,744 views

At first blush, it's a challenge to reconcile how the opposing viewpoints of Eugene Fama and Robert Shiller could be awarded the same Nobel Prize — at the same time.

Fama's contributions to modern finance are pervasive — so much so that he is known as the "Father of Modern Finance." Fama's share of the award is the result of his 1960's work establishing that short-term stock prices are very hard to predict.

Shiller sits directly opposite from Fama on the subject of market efficiency, arguing that mispricings can be identified through rigorous analysis and exploited for profit. How can they both be right?

To learn more, read our article.

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