Question

You are a new portfolio manager, who after your first successful trading day on the job,...

You are a new portfolio manager, who after your first successful trading day on the job, goes out with you new boss for a celebratory drink. At the pub, you argue strongly for the strong form of the efficient market hypothesis. Your boss’s eyes narrow, and you begin to get nervous. What is strange about your argument?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Under strong form of efficient market hypothesis, the market is highly efficient which means the market price of a stock reflects all price sensitive information whether it is public or private. Therefore, there is no way through which money managers, portfolio managers and other market experts can earn supernormal profit, not even through insider trading. When you strongly argue for strong form of efficient market hypothesis, you, simply washed off any chances of your company earning supernormal profit through the market trading thereby suspecting your company existence and motivation to operate, which indeed is quite strange.

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
As you begin your new job as an engineer, your boss assigns your first task of...
As you begin your new job as an engineer, your boss assigns your first task of optimizing the manufacturing warehouse. Your company houses a variety of different products in the warehouse. Each product is placed on a dedicated shelf in the warehouse. Assume that all of the same type fit on a single warehouse shelf, and that for simplicity, a shelf can hold only a single type of item. The warehouse has two types of shelving: Shelving in prime locations,...
This morning as you drove to your job as food service manager at the Pechanga Casino...
This morning as you drove to your job as food service manager at the Pechanga Casino Entertainment Center in Temecula, California, you were concerned to hear on the radio that the local Red Cross chapter put out a call for blood because national supplies have fallen dangerously low. During highly publicized disasters, people are emotional and eager to help out by donating blood. But in calmer times, only 5 percent of eligible donors think of giving blood. You’re one of...
THE CASE OF THE MEXICAN CRAZY QUILT “The mission of the project which you will head...
THE CASE OF THE MEXICAN CRAZY QUILT “The mission of the project which you will head is to get our new Mexican subsidiary ready for take-over by Mexican managers. My hope is that you will be able to do this in about two years,” explained Robert Linderman, president of Linderman Industries, Inc., to Carl Conway, newly appointed manager for “Operation Mexicano.” Conway had been hired specifically for this assignment because of his experience in managing large defense projects in the...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
Team 5 answer the questions What are 4 key things you learned about the topic from...
Team 5 answer the questions What are 4 key things you learned about the topic from reading their paper? How does the topic relate to you and your current or past job? Critique the paper in terms of the organization and quality. Incentive Systems             In this paper, we will focus primarily on financial rewards that companies use to attract, retain and motivate the brightest and most talented candidates in the labor market. By providing a reward system that...
QUESTION 1 1. Brianna is trying to increase her chances of being promoted to vice president...
QUESTION 1 1. Brianna is trying to increase her chances of being promoted to vice president by working to build good work relationships with other managers outside her own department. Brianna's behavior should be viewed as dysfunctional politics. functional politics. coercive power. functional influence. 2 points QUESTION 2 1. The Gingerbread Factory has a separate unit that makes their chocolate crunch cookies and another unit that is completely responsible for all operations in producing their ginger snap cookies. The Gingerbread...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT