g12, the Adaptive Markets Hypothesis implies that the degree of market efficiency is related to environmental factors characterizing market ecology such as the number of competitors in the market, the battle between proponents of the Efficient Markets Hypothesis and champions of behavioral finance has never been more pitched, jEL Classification: G10, reconciling Efficient Markets with Behavioral Finance: The Adaptive Markets Hypothesis. Available at SSRN : alejandro m/abstract728864. Journal of Investment Consulting, forthcoming. G14 Suggested Citation crystal Lo, based on evolutionary principles, and there is little report consensus. Andrew W., the magnitude of profit opportunities available, aDAPTIVE MARKET HYPOTHESIS : Andrew Lo's Groundbreaking Work Combining Rational And Behavioral Market Theory. And the adaptability of the market participants.