Efficient Market Theory Efficient Market Theory: A Contradiction of Terms Daniel W. L. Wung Baker College Center for Graduate Studies Table of Contents Table of Contents i Abstract 2 Discussion References A-1 Abstract According to the Efficient Market Theory, it should be extremely difficult for an investor to develop a “system” that consistently selects stocks that exhibit higher than normal returns over a period of time. It should also not be possible for a company to “cook the books” to misrepresent the value of stocks and bonds. An analysis of current literature, however, indicates that companies can and do “beat th