Of course, the EMH may get the last laugh, in a way. As often happens, money managers will read this paper and write code to do more sophisticated versions of what the professors did. They will trade on the mispricing, and it will mostly vanish, allowing proponents of efficient markets theory to declare victory. But this is a very big thing for the market to have missed for so long. The acolytes of Graham and Dodd were on to something.

Noah Smith is a Bloomberg View columnist. He was an assistant professor of finance at Stony Brook University, and he blogs at Noahpinion.

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