Assuming the Efficient Markets Hypothesis correctly describes
financial markets, what implications does this have for the
performance of active portfolio managers? What types of
returns should investors expect to earn if the EMH is correct?
i. Explain the three forms of efficient markets as stated in the
Efficient market hypothesis (EMH). What type of investment
strategies would work best if the markets are actually
efficient?
.ii. Explain with
suitable examples from the business world, the role of Corporate
Governance in efficient working of a business. You may take
reference from agency theory in drawing up your analysis.
10. According to the efficient markets hypothesis, *
in the short run, it is best to buy high and sell low.
anyone can outperform the stock market indices (indexes).
no investor can regularly outperform the stock market indices
(indexes).
when one investor outperforms a stock market index, another
investor will underperform that index.
11. All important information about the use (value) of a good is
captured *
in its price.
by a central planner.
in its ceteris paribus.
by the...