Question

In: Economics

Do you think the Toronto Stock Exchange adheres to the EMH? Why or Why not?

Do you think the Toronto Stock Exchange adheres to the EMH? Why or Why not?

Solutions

Expert Solution

An EMH market is one in which there are large number of profit hungry investors who are actively and independently carrying out stock research such that the current stock price reflects all available information and new information comes to market random basis and affect stock instantly. EMH markets are three types weak, semi-strong and strong.

So after seeing above information we can say yes it is a EMH market.


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