Friday, December 17, 2004

Where do inefficiencies exist? Where imperfections exist!

Efficiency does not mean perfection!

This came up in class the other day, so I figured even though the Ofek, Richardson, and Whitelaw paper itself has been around for a while (it has been accepted but has yet to be published at the JFE), I would do a quick recap of the discussion and add the links to the actual paper in question.

We were speaking about market efficiency, and suggesting that if

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