The efficient market hypothesis is interpreted in a weak form, a
semi-strong form, and a strong form. First, explain the efficient
market hypothesis. Then, differentiate between the three forms.
Which form is most commonly accepted?
Why? Do agree? Disagree?
Why? What evidence did you find to support your opinion?
Which of the following describes a violation of the semi-strong
form of the efficient market hypothesis (EMH)?
A) A classmate of yours excels in analyzing the future outlook
of firms, but he does not find that his skill gives him any
advantage in the marketplace.
B) Very risky stocks on average yield higher returns than safe
stocks.
C) The stock of an acquired firm tends to provide a positive
abnormal return to its shareholders when the merger announcement
is made. ...
If as an investor you believe the semi-strong form of the
Efficient Markets Hypothesis is true, what is your rational
investment strategy?
Explain and justify the strategy.
Question) According to the semi-strong form of the efficient
markets hypothesis, ____.
Multiple Choice Answers) Please answer and explain!
a) stock prices do not rapidly adjust to new information.
b) corporate insiders should have no better investment
performance than other investors even if allowed to trade
freely.
c) future changes in stock prices cannot be predicted from any
information that is publicly available.
d) arbitrage between futures and cash markets should not produce
extraordinary profits.
Explain clearly how you will proceed to test the semi
strong form of market hypothesis using profit difference of certain
stocks and market index?
if you could do an example on copybook, like draw
column and put on some data and then explain what to do. Will put
positive review if well explain.