Question

As regards the Efficient Market Hypothesis (EMH) in its three forms (weak, semi-strong and strong) assign...

As regards the Efficient Market Hypothesis (EMH) in its three forms (weak, semi-strong and
strong)
assign a form to each example below:
Stock price is based on all information private and public.
_______
It is of no use to perform a technical analysis (which is stock price prediction based exclusively on past
trading data,) in selecting a stock.
______
It is useless for us to analyse a stock based on publicly available information.
_______
The most valid form of the EMH is:

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Stock price is based on all information private and public.

Strong Efficient Market Hypothesis

It is of no use to perform a technical analysis (which is stock price prediction based exclusively on past
trading data,) in selecting a stock.

Weak Efficient Market Hypothesis

It is useless for us to analyse a stock based on publicly available information.

Semi-Strong Efficient Market Hypothesis

Most valid form is Semi- Strong

NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The EMH maintains that prices reflect all relevant information. Weak, semi-strong and strong form efficiency are...
The EMH maintains that prices reflect all relevant information. Weak, semi-strong and strong form efficiency are different versions that vary the relevant information set. Which versions of efficiency would imply that a trading strategy based on trends in historical price and trading volume would not be beneficial? I. Weak form II. Semi-strong form III. Strong form
In regards to the Efficient Market Hypothesis which one of the forms of information could possibly...
In regards to the Efficient Market Hypothesis which one of the forms of information could possibly include insider trading issues? A. The Strong B. The Martha Stewart C. The Weak D. The Semi Strong
Which of the following statements related to strong and semi-strong market efficiency are true? In a...
Which of the following statements related to strong and semi-strong market efficiency are true? In a semi-strong form efficient market, all past price and trading information (but not all other publicly available information) is fully impounded into current market prices In a strong form efficient market, corporate insiders are not be able to make superior profits to the market through private information In a semi-strong form efficient market, investors using fundamental analysis (but not technical analysis) will be able to...
Assume that markets are weak-form efficient, but not semi-strong form or strong form efficient. Which of...
Assume that markets are weak-form efficient, but not semi-strong form or strong form efficient. Which of the following statements is most correct? a. Each common stock has an expected return equal to that of the overall market. b. Bonds and stocks have the same expected return. c. Investors can expect to earn super-normal returns if they have access to public information. d. Investors may be able to earn super-normal returns if they have access to information that has not been...
b) Discuss implications of the semi-strong form of the Efficient Market Hypothesis (EMH) for investors. Support...
b) Discuss implications of the semi-strong form of the Efficient Market Hypothesis (EMH) for investors. Support your answers with some examples and empirical evidence.
According to which form(s) of the Efficient Markets Hypothesis will the price of Stock B immediately...
According to which form(s) of the Efficient Markets Hypothesis will the price of Stock B immediately adjust by the correct amount (there is no under- or overreaction), when a brand new piece of information about Stock B becomes public? Choose the best answer below. Select one: The weak form The semi-strong form The strong form The weak and semi-strong forms The weak and strong forms The semi-strong and strong forms The weak, semi-strong, and strong forms
What type of market efficiency a technical stock trader believes in - weak, semi-strong, or strong...
What type of market efficiency a technical stock trader believes in - weak, semi-strong, or strong form efficient markets?
The current literature generally concludes that the share markets in the developed countries are semi-strong form...
The current literature generally concludes that the share markets in the developed countries are semi-strong form efficient but not strong form efficient. Which of the following statements is consistent with the finding? Select one: a. Fundamental analysis will not yield any return as the current share price reflects all publicly available information. b. Technical analysis is still useful and gives the investor an advantage over others. c. The current share price reflects both public and private information. d. Insider trading...
Which of the following statements is most correct? If a market is strong-form efficient this implies...
Which of the following statements is most correct? If a market is strong-form efficient this implies that the returns on bonds and stocks should be identical. If a market is weak-form efficient this implies that all public information is rapidly incorporated into market prices. If a market is semi-strong weak-form efficient this implies that all private information is rapidly incorporated into market prices. None of the above statements is correct.
what is the form of market hypothesis (strong, semi strong or weak) when there is an...
what is the form of market hypothesis (strong, semi strong or weak) when there is an company announcement of having a positive profit for the 1st half but having a fall in its stock price the next few days, followed a drastic drop in price after 1 week?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT