Notes
1 There are obviously many possible forms of democratically guided socialism.
2 The efficient financial market hypothesis states that all information relevant to security pricing is known to all participants in the market.
Expectations of the future cash flows associated with all securities are correct or "rational." It must be incorporated into a theory (such as the Capital Asset Pricing Model) that explains how this information is used to determine security prices. Since this is an equilibrium model in which all agents have the same information, there is no trading in the model.3 See chapter 1 in Crotty (2017) for a more complete listing of the unrealistic assumptions used to build the theory.
4 See chapter 4 in Crotty (2017), which is based on a paper first presented in late 2006.