A hypothesis is usually written in the form of an if-then statement, which gives a possibility (if) and explains what may happen because of the possibility (then).

There are three main variations on the theory: 1. The Weak Form of the Efficient Market Hypothesis Although investors abiding by the efficient market hypothesis believe that security prices ...

To form a good hypothesis, you should ensure certain criteria are met when making your prediction statements. The hypothesis must be testable as a start, reports Corporate Finance Institute.

The efficient market hypothesis states that share prices reflect all relevant information, and that it is impossible to beat the market or achieve above-average returns on a sustainable basis ...

Strong form efficient market hypothesis followers believe that all information, both public and private, is incorporated into a security’s current price. In this way, ...

You form a hypothesis that raccoons are responsible. Through testing — maybe you stay up all night to watch for raccoons — the results will either support or refute your hypothesis.

However, these theories employ the term “hypothesis” in a manner that is inconsistent with its history. This divergence is at best misleading, and at worst counter-productive.

The efficient market hypothesis (EMH) theorizes that the market is generally efficient, but offers three forms of market efficiency: weak, semi-strong, and strong.