Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/293917 
Year of Publication: 
2021
Citation: 
[Journal:] Credit and Capital Markets – Kredit und Kapital [ISSN:] 2199-1235 [Volume:] 54 [Issue:] 3 [Year:] 2021 [Pages:] 447-467
Publisher: 
Duncker & Humblot, Berlin
Abstract: 
The modern financial market theory (MFMT) – based on the efficient market hypothesis, rational expectation theory, and modern portfolio theory – has become the standard approach in financial market economics. In this article, the MFMT will be critically ­reviewed using the logic of human action (or: praxeology) as an epistemological meta­theory. It will be shown that the MFMT exhibits (praxeo-)logical deficiencies so that it cannot provide investors with well-founded decision-making support in real-world financial markets.
Subjects: 
Efficient Market Hypothesis
Rational Expectation Theory
Modern Portfolio Theory
Capital Asset Pricing Model
Economic Methodology
Logic of human action
Austrian Economics
JEL: 
G140
G41
B4
B41
E3
G1
G110
G14
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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