Market Efficiency and Inefficiency : An Overview on the Adaptive Market Hypothesis

Academic research and financial trader during the past 50 years are unable to come to consent whether the capital market are efficient or not.The inconclusive and mixed result of the market efficiency and inefficiency gave the birth of new theories that reconcile the two schools of thought in a natural and satisfying conclusive manner. The theory called Adaptive market hypothesis (AMH) was propounded by Andrew Lo in 2004. The present paper explored the various literatures related to the efficient market hypothesis and had identified the various findings of the studies conducted. The paper aimed to identify the existing gap related to the study of the market efficiency by exploring the related literatures. The paper scrutinized the controversial EMH and explored the related literatures and has come out with the existing gap in understanding the market efficiency