T1 - Adaptive market hypothesis

Short-term drifts in stock (as well as bond, commodity and currency) prices have been well- documented in the academic literature. The fact that prices fully adjust to new information gradually, over time, rather than instantaneously, is a violation of the efficient markets hypothesis.

KW - adaptive market hypothesis

Adaptive market hypothesis - Wikipedia
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The Adaptive Markets Hypothesis - Scribd

It’s also contrary to the findings of Paul Calluzzo, Fabio Moneta and Selim Topaloglu, who contributed to our understanding of how markets work and become more efficient over time (in other words, the adaptive markets hypothesis) with their 2015 study, “”

The Adaptive Markets Hypothesis - CFA Institute

Returning to Kim, Li and Perry’s study, stocks in the S&P 500 Index are not costly to arbitrage. Thus, the anomaly should have disappeared. Yet it persisted long after publication. With the adaptive markets hypothesis in mind, the authors extended the research to include the period from 2010 through 2013.

"Reconciling Efficient Markets with Behavioral Finance: The Adaptive Markets Hypothesis".
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Testing the Adaptive Markets Hypothesis - BAM ALLIANCE

One of Peter Ward’s recent hypotheses is that animals that adapted to the changing conditions, particularly when oxygen levels crashed, survived the catastrophes to dominate the post-catastrophic environment. In the late Permian, several therapsid lines developed , which may have been used for respiratory water retention in a world where oxygen levels were crashing. This is a controversial issue, and related to the controversy over when reptiles developed . The therapsid ancestors of mammals, , first appeared about 260 mya, and had many .

Efficient-market hypothesis - Wikipedia

Chan Wung Kim, Xiao Li and Timothy Perry, authors of the study “,” which was published in the Summer 2017 issue of the Journal of Index Investing, provide us an interesting test of Lo’s adaptive markets hypothesis.

Reflecting On A New Theory: The Adaptive Markets Hypothesis

When sea levels rise as dramatically as they did in the Cretaceous, coral reefs will be buried under rising waters and the ideal position, for both photosynthesis and oxygenation, is lost, and reefs can die, like burying a tree’s roots. About 125 mya, reefs made by , which thrived on , began to displace reefs made by stony corals. They may have prevailed because they could tolerate hot and saline waters better than stony corals could. About 116 mya, an , probably caused by volcanism, which temporarily halted rudist domination. But rudists flourished until the late Cretaceous, when they went extinct, perhaps due to changing climate, although there is also evidence that the rudists . Carbon dioxide levels steadily fell from the early Cretaceous until today, temperatures fell during the Cretaceous, and hot-climate organisms gradually became extinct during the Cretaceous. Around 93 mya, , perhaps caused by underwater volcanism, which again seems to have largely been confined to marine biomes. It was much more devastating than the previous one, and rudists were hit hard, although it was a more regional event. That event seems to have , and a family of . On land, , some of which seem to have , also went extinct. There had been a decline in sauropod and ornithischian diversity before that 93 mya extinction, but it subsequently rebounded. In the oceans, biomes beyond 60 degrees latitude were barely impacted, while those closer to the equator were devastated, which suggests that oceanic cooling was related. shows rising oxygen and declining carbon dioxide in the late Cretaceous, which reflected a general cooling trend that began in the mid-Cretaceous. Among the numerous hypotheses posited, late Cretaceous climate changes have been invoked for slowly driving dinosaurs to extinction, in the “they went out with a whimper, not a bang” scenario. However, it seems that dinosaurs did go out with a bang. A big one. Ammonoids seem to have been brought to the brink with nearly marine mass extinctions during their tenure on Earth, and it was no different with that late-Cretaceous extinction. Ammonoids recovered once again, and their lived in the late Cretaceous, but the end-Cretaceous extinction marked their final appearance as they went the way of and other iconic animals.