Question

In: Finance

Mature reflection of the EMH taking into account the evidence provided during the investment exercise.

Mature reflection of the EMH taking into account the evidence provided during the investment exercise.


Solutions

Expert Solution

Ans. Efficient Market Hypothesis : Efficient Market Hypothesis is defined as theory states that shares price is consistent and stocks always traded at market price. The chances of undervaluation and overvaluation is very low. According to EMH, investers are able to earn higher returns with risky investments.

As per theory, it is belief that it is possible to outperform the market if the stocks deviates from their market prices.


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