Explain market efficiency define the concept of market efficiency and the efficient market hypothesis (EMH).
a. Provide an argument that either supports or refutes the application of EMH.
Use research and examples of investors. i. Warren Buffet, Joel Tillinghast, Will Danoff – consistently do better than the market.
ii. Consider the risk with investing based on the EMH premise versus the risk of ignoring EMH.
define the concept of market efficiency and the efficient market
hypothesis (EMH).
Provide an argument that either supports or refutes the
application of EMH. Use research and examples of investors
Discuss the meaning of an efficient
market. What are some of the limitations to the efficient market
hypothesis?
Discuss some of the factors that a firm
can and cannot control when assessing their Weighted Average Cost
of Capital (WACC)
Discuss the concept of Efficient Market Hypothesis and major
implications of the Efficient Market Hypothesis. After that, please
provide a comprehensive review on evidence in support of the
Efficient Market Hypothesis and evidence against the efficient
market hypothesis (comprehensive means that you need to give a very
clear description of each evidence).
The highly dynamic market environment is not only a challenge,
but also an opportunity for enterprise. Describe the challenges
faced by fast growing enterprise in internet industry (Alibaba) and
traditional enterprise (Haier Group) during this pandemic Covid
-19. How can the enterprises cope with these environment changes
and turn into opportunity?
Which of the following statements concerning market efficiency
is correct? I. An efficient market accurately aggregates
information. II. In an efficient market, portfolio managers add
value by conducting detailed financial analyses of firm
fundamentals. III. In an efficient market, the only way to earn
higher returns is to take on more risk. IV. In the most extreme
version of the efficients market hypothesis, only insiders can earn
excess returns.
Define an Efficient Market. What factors would tend to promote
efficiency? Outline the implications of market efficiency for (i)
Directors and Managers of firms and (ii) Market regulators.
Is the factors that promote efficiency > Information
available in the market?
And how does it impact the directors, and regulators?
Briefly explain the concept of market anomalies in Efficient
Market Hypothesis; also provide reasons why they do not disappear
if markets are completely efficient. [4]