First Proof

This is going to be, or at least start as, a messy grouping of notes and ideas. However, I think it is important. My understanding of the efficient market theory can be summed up in this snippet from Wikipedia: "In finance, the efficient-market hypothesis (EMH) asserts that financial markets are "informationally efficient". In consequence of this, one cannot consistently achieve returns in excess of average market returns on a risk-adjusted basis, given the information available at the time the investment is made"


I want to prove otherwise. In fact, I want to prove that if it is not possible to achieve returns in excess of average market returns then participation in markets would subside. I'll be focusing on stock and derivatives markets, as those are my interests. I will try to dissect the various forms of market efficiency, but think that starting with the strongest form is perhaps the best. Of course, it has its uses in simplifying matters. I am  merely looking at it from a variety of perspectives to see when it aids and when it hampers research.