what exactly is the difference betweenn past information and present information in the context of Efficient market hypothesis.
if both past and present information is accessable to the investors, such information must have been reflected in securities prices as per EMH.
If so, what makes the present information different from past information.
can we hypothesize that past information is already reflected in the securities prices and present information is accessable but not yet reflected in the securities prices. it is in the processing of securties analysis.
thanks in advance.
Dear Srikanth
I agree with you that there may be a delay in the diffusion of present information (both dissemination and processing of that news). In addition, the weighting of information is different between past and present such that the present will have a higher coefficient weighting impacting the current price.
thank you prof. Micheal Neubert and Prof. Raymond for your valuable answer.
if new information is not available all market participants at the same time, then it become difficult to distinguish between new and old information among different types of market participants.
Prof. Micheal Neubert, am I correct in understanding your answer?
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