empirical evidence supports the notion that U.S. stock markets are generally____form efficient. a. weak b. semi-string...

empirical evidence supports the notion that U.S. stock markets are generally____form efficient.
a. weak
b. semi-string
c. strong
d. the studies have shown mixed results.

Solutions

Expert Solution

an efficient market is that market where the investor is rational which means logical they try to predict the market either by the past pattern and try to maximize the returns. Theory suggests three forms of hypothesis

1)weak-they believe there is no pattern in price and everything is included in the price, so technical analysis is of no use, Only fundamental analysis can help you to earn more return

2)semistrong=everything thing is included in the price and no analysis can help to earn an extra return. Only way to earn extra return is to use the information which is not readily available to investors

3)strong=they suggest all is been included in price whether it is known in the public domain or not . There is no way to earn extra return

There are many anomalies which this theory is unable to explain

USA market can be considered as a semi-strong form of the market as many analysts are aware of technical and fundamental analysis so that is common But when the new information like Job data or any global news comes which is not known to public market react and give chance to earn extra return

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

(b) Discuss the empirical evidence on market under-reaction in the context of weak and semi-strong form...

(b) Discuss the empirical evidence on market under-reaction in the context of weak and semi-strong form efficiency.

what are the empirical evidence that supports or refutes the Efficient Market Hypothesis? need details thanks

Discuss the empirical evidence on market under-reaction in the context of weak and semi-strong efficiency

Most evidence indicates that U.S. stock markets are _____.

Most evidence indicates that U.S. stock markets are _____.a) neither weak-, semistrong-, nor strong-form efficient.b) strong-form efficient.c) reasonably weak-form but not semistrong- or strong-form efficient.d) reasonably weak-form and semistrong-form efficient.

Does empirical evidence generally support EMH in weak or semi-strong form efficiency? Please provide some examples...

Does empirical evidence generally support EMH in weak or semi-strong form efficiency? Please provide some examples of the supportive evidence or evidence against it.

What are some of the key theories that link accounting with the notion of efficient markets?...

What are some of the key theories that link accounting with the notion of efficient markets? What do these theories find and what are the assumptions that underpin their methods? (1,000words essay question)

Navigate to the threaded discussion and respond to the following prompts: What empirical evidence supports the...

Navigate to the threaded discussion and respond to the following prompts: What empirical evidence supports the theoretical approach of the agency in which you are doing your practicum? What human rights does your agency commit to, and what social justice issues does it address? What client groups might feel positively or negatively toward your agency and why? How does the agency determine whether it is effective?

Question