Question

Explain the significance of the ARIMA model from the perspective of Efficient Market Hypothesis.

Need details, thanks a lot!

Answer #1

Firstly efficient market hypothesis says that asset prices fully reflected all available information.Its impossible to beat the market consistantly on risk adjusted basis when market price only react on new infirmation.

The significance is that this model in efficient market hypothesis is which help to predict future value of serise which entirly on its own inertia.

Another significance is that it helps to suit different standard temporal structure in time serise data.

The efficient market shows correct information of price so it is usefull to predict from this model.

In efficient market risk adjusts in new information so AIRMA model help to predict risk of new information and give mulipale analysis of the dataset.

1. Explain the Efficient Market Hypothesis

Use your own works to explain the efficient market hypothesis,
in your explanation, you need to provide academic references in
suitable formattin. Whcich form of market efficiency is the most
important to accounting research? Why?

Why Arbitrage Opportunities imply that the Efficient Market
Hypothesis hold ? Explain...

Explain efficient market hypothesis
similarities and differences between CAPM and APT

Explain how the efficient market hypothesis (EMH) may be
inconsistent with the ideal of a positive NPV project.

1. Explain the three versions of Efficient Market Hypothesis and
provide an opinion as to which form the US currently operates under
and why.

Some people argue that the efficient markets
hypothesis cannot explain the 1987 market crash or the high price
to earnings ratio of internet stocks during the late 1990s. What
alternative hypothesis is currently used for these two
phenomena?

Find and explain a real-life scenario of financial
irrationality, i.e., violation of efficient market hypothesis
(EMH).
It can be from investors' irrationality, finance managers'
irrationality or any irrationality related to finance.

A) What does rational expectations have to do with the Efficient
Market Hypothesis (describe/explain)?
B) There is some evidence that the rational expectations
hypothesis does not always hold. List and describe/explain two
reasons why the rational expectations hypothesis might not hold
for, say, the Dow Jones Industrial Average

I'm trying to understand the concept of efficient market
hypothesis.
So assume that a company made a positive announcement on its
profit.
The next day, its share price declined (downward trend) after
the announcement.
What is this form of EMV? Able to provide some context for
better understanding? Thanks.

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