--%>

Explain validity in forms of Efficient-market hypothesis

Explain the validity in various forms of Efficient-market hypothesis.

E

Expert

Verified

There have been many studies of the Efficient-market hypothesis, and the validity of its various forms. Many early studies finished in favour of the weak form. Large-capitalization stocks and Bond markets are thought to be highly efficient, slighter stocks less so. Due to different quality of information among investors and due to an emotional component, real estate is thought of as being rather inefficient.

   Related Questions in Financial Management

  • Q : What is Volatility What is Volatility?

    What is Volatility? Answer: It is annualized standard returns’ deviation.

  • Q : Question based on Fisher effect Normal

    Normal 0 false false

  • Q : 10.1 Unfocused Books is a discount

    Unfocused Books is a discount retail bookshop that has three departments: fiction, non-fiction and children’s books. Sales and cost of sales for each department are shown below. In addition, each department has its own fixed costs for staffing and takes a one-third share of rental and management cos

  • Q : Question on interest rate parity Normal

    Normal 0 false false

  • Q : Risks in using a large amount of

    What are the risks associated with using a large amount of short-term financing for working capital?

  • Q : Why is Value at Risk important Why is

    Why is Value at Risk important? Specified with reasons?

  • Q : Acc Fin Assume that you inherited some

    Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of $50 (1 payment at the end of each of the next 4 years) plus an extra payment of $1,000 at the end of Year 4. Your friend sa

  • Q : Explain standard model is the lognormal

    For equities the standard model is the lognormal model, if there are many more ‘standard’ models within fixed income. Does it matter?

  • Q : Appraisal of AFEP and CNPF In the year

    In the year of 1995, a working group of French chief executive officers was set up by the French Association of Private Companies (AFEP) and Confederation of French Industry (CNPF) to study the French corporate governance structure. The group reported the prov

  • Q : Zero-coupon bond issues The discussion

    The discussion of zero-coupon bonds in the text gave an instance of two zero-coupon bonds issued through Commerzbank.  The DM300, 000,000 issues due in the year of 1995 sold at 50 percent of face value and the DM300, 000,000 due in the year of 2000 sold a