Noise trading in financial market and effects on asset pricing

Capital markets has a key role of distribution of scarce source capital in an economy. Asset price level is critic for the efficient market. That is why, explaining and testing investment decision process models are necessary. Efficient market theory is one of the important study about this issue in finance. Efficient market theory(EMT) is claim that prices follow random walk process and includes all information. On the other hand, EMT is an inadequate of explaining the anomalies in the market. It needs to build new models. One of these models is "Noise " by Fisher Black. Black defined noise as all other thing than information in his article. De long, Shleifer, Summers, Waldman claimed that noise traders have driven stock market prices from it must be. On this thesis, we will research noise and nois trader effects on BIST-100 indices then each stock groups.