Question

Answer please the Question below with your own words - WRITTEN FORM - Written means that it is typed here not as a picture

2) In a 1953 study of stock prices, what did Maurice Kendall find and what does it mean in terms of the EMH? Explain

2.1) Even if the markets are efficient, you can find a job as a professional portfolio manager. How is that possible?

Answer 1

Maurice kendall found that stock prices mpve randomly without correlation and capital markets are thus irrational making sense that investors dont have fixed pattern for analysis in each time frame as markets are volatile.

As per EMH or efficiency market hypothesis, stock prices reflect all available information and is Segregated into weak form, strong form and semi strong form.

Even if markets are efficient one can find job in portfolios management as one can time the market cycles and make subsequent investment based in diversified asset allocation methodology and buy assets in cheap prices in bear market and sell assets in high prices in bull markets, thus creating profit maximizing business. Thus in both markets the job is secured and brings wider versatility and adaptability to change in business cycles like troughs and peaks.

PLEASE UPVOTE INCASE YOU LIKED THE ANSWER WILL BE ENCOURAGING FOR US THANKYOU VERY MUCH ALL THE BEST IN FUTURE.