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The misconceptions fall into three distinct categories:
1- The nature of market efficiency
2- the evidence for efficiency
3- The implications of efficiency
1- The First group of misconceptions arises from a
misunderstanding of what market efficiency signifies. If an efficient market is incorrectly interpreted as one which must
necessarily be composed of all knowing and all seeing investors, who can penetrate the uncertainties of the future, Then it is
understandable why misconceptions such as the following arise:

1-1- The market cannot always be right
1-2- EMH assumes that all investors behave rationally

1-3- Stock market bubbles imply inefficiency
2- It is natural for investors who are unfamiliar with the
Research literature to attempt to rationalize their beliefs from their personal experience and this has been shown to offer ample
scope for favoring the illusion of inefficiency.
3- If the nature of efficiency is misunderstood, then it is more likely that its implications will be incorrectly assessed