The market efficiency theory has been tested by different types of research. Such concept assumes, on its weak form, that the past trading information of a stock is reflected on its value, meaning that historical trading data has no potential for predicting future behavior of asset’s prices. The main theoretical consequence of this concept is that no logical rules of trading based on historical data should have a significant positive excessive return over some benchmark portfolio.

In opposition to the market efficiency theory, several papers have showed that past information is able, in some extent, to explain future stock market returns. Such predictability can appear in different ways, including time anomalies (day of the weak effect) and correlation between the asset’s returns and others variables. A respectable amount of papers have tried to use quantitative tools in order to model the market and build trading rules. The basic idea of this type of research is to look for some kind of pattern in the historical stock price behavior and, using only historical information, take such pattern into account for the creation of long and short trading positions.

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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