Efficient Capital Markets Efficient capital market is one in which security prices adjust rapidly to the arrival of new information and. therefore the current prices of securities reflect all information about the security. Efficient Market Hypotheses(EMi)are those alternative hypotheses which consider the efficiency of the marketsEfficient Capital Markets • Efficient capital market is one in which security prices adjust rapidly to the arrival of new information and, therefore, the current prices of securities reflect all information about the security. • Efficient Market Hypotheses (EMH ) are those alternative hypotheses which consider the efficiency of the markets