Question

In: Finance

Why would you, as a good investor want to trade with Pro Medicus Ltd in 2020....

Why would you, as a good investor want to trade with Pro Medicus Ltd in 2020. Reflect on the Efficient Market Hypothesis in managing Pro Medicus Ltd?

Note that Pro Medicus Ltd is a profitable company whose share prices are constantly rising.

Solutions

Expert Solution

Pro medicus Limited is an imaging IT provider. It is providing with full radiology IT software and it is an Australian company. I will be trading with this company because this company has shown a price momentum and after hitting the lows in in coronavirus crisis, this company has continuously provided recovery and there has been a strength based upon the price and the volume which can easily be used by traders in order to trade this company so this company has been a constant outperformer on the charts and it is looking that it is also trading above the moving averages.

Efficient market hypothesis is advocating that all the publicly available information and privately available information have already been discounted into the stock price in there is no scope for making any additional rate of return so no kind of Technical Analysis will be available in Efficient market and which can be reflected that this company cannot provide excess rate of return in Efficient market through technical analysis.


Related Solutions

Why a firm would want to create pro-forma statements. Explain why creating pro-formas is beneficial to...
Why a firm would want to create pro-forma statements. Explain why creating pro-formas is beneficial to your firm and a healthy practice for a business.      Additionally, discuss two challenges or shortcomings of using the percentage of sales approach.
If you have a computer, why would you want an IP address? Why would you want...
If you have a computer, why would you want an IP address? Why would you want a URL? Would you ever want both? Why? Detailed answer please.
Why would someone want to buy stock? Why is stock valuable to an investor? What makes...
Why would someone want to buy stock? Why is stock valuable to an investor? What makes stock different than a bond or a savings account at a bank? How might you determine the risk of a certain firm? How does the risk of the firm relate to the return you expect from the stock?
List and briefly explain three very good reasons why you certainly would want to file a...
List and briefly explain three very good reasons why you certainly would want to file a tax return for a particular year even though your taxable income was well below the filing threshold. Note 1: Less than three will not earn you this bonus point, so don’t bother with just one or two. Note 2: Yes, I am thinking of three very specific situations. But would love to hear about other reasons beyond the three I’m thinking of!
Describe what a pro se action is. Is it a good idea?Why or why not?...
Describe what a pro se action is. Is it a good idea? Why or why not?(This is in relation to criminal justice)
If a good sold for different prices in different locations, then why would trade be likely?...
If a good sold for different prices in different locations, then why would trade be likely? What would likely happen to prices and employment with trade? Why?
How would you describe yourself to an investor that you want to give money to your...
How would you describe yourself to an investor that you want to give money to your business
If an investor or portfolio manager is expecting interest rates to increase why would he/she want...
If an investor or portfolio manager is expecting interest rates to increase why would he/she want to hold bonds at all?
If you were an investor, or considering to become one, which financial statement would you want...
If you were an investor, or considering to become one, which financial statement would you want to look at? Do you consider the Cash Flow Statement significant?
Recursion Discussions Question: Why would you want to use recursion? Concerning programming, when would you want...
Recursion Discussions Question: Why would you want to use recursion? Concerning programming, when would you want to use iterative vs. recursive programming? Where does coding fit in concerning the software process (i.e. its use in design, in coding, etc.)? Describe recursion problems, and why does it seem to fit with recursion? (e.g. nature, math, music, sports game, etc.)  
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT