Does Philosophy Of Science Help To Be A Better Financial Economist

Fama (1970) writes that a “… market in which prices fully reflect available information is efficient”.

Referring to the source:

Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. The Journal of Finance, 25 (2), 383-417.

Answer the question: Does philosophy of science help to be a better financial economist?

First, relate Fama’s definitions of efficiency to the event study method in finance. Then connect market efficiency and the event study approach to the Duhem-Quine problem.

Word limit: 400 words. Due date: 10/4/2024