[smitty1e]

For a sufficiently large market, over time, one would expect the Central Limit Theorem to kick in and filter the noise.

The "Efficient Market" can be seen as an Eternal Steady State, neglecting all transient signals.

[chii]

but doesnt the central limit theorem require each event to be i.i.d. ?

I dont think the efficient market is a result of the central limit theorem, since each transaction affecting the market is not independent of each other.

[smitty1e]

Fair point. Thank you.