There are three forms to the Efficient Market Hypothesis. Please
describe each of the forms and what they assume. Based upon your
reading of the text and your own knowledge and research, do you
believe there is any element of truth to any of these hypothesis?
In your opinion, does this hypothesis add to our general
understanding of how markets work, or is it too outdated to be of
any value? Please provide some support for your opinion.
Describe the three forms of Efficient Market Hypothesis and in
each form, discuss the usefulness of technical analysis and
fundamental analysis in portfolio choice.
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.
Explain the term ‘Efficient Market Hypothesis’. Analyse the
various forms of Efficient Market Hypothesis showing how each of
them can be tested. Use practical examples to demonstrate an
understanding of any security trading strategies which may support
or otherwise the claims of the Efficient Market Hypothesis.
Word count required: 400-450 words
Describe the three forms of the Efficient Markets Hypothesis and
explain the behavioral finance critique of market rationality.Be
sure to include evidence of why markets could be considered
efficient and why they could be considered inefficient. Conclude by
explaining if you feel markets are efficient, emphasizing why you
feel that way.