Explain validity in forms of Efficient-market hypothesis
Explain the validity in various forms of Efficient-market hypothesis.
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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.
Describe the concept of the world beta of a security.The world beta measures the sensitivity of returns to security to returns to the world market portfolio. This is a measure of the systematic risk of the security in global setting. Statistically, the world beta can be des
How can the FX futures market be utilized for price discovery?To extent that FX forward prices are an unbiased predictor of future spot exchange rates, the market anticipates whether one currency will appreciate or depreciate versus another. Si
Company A is a AAA-rated firm wanting to issue five-year FRNs. It determines that it can issue FRNs at six-month LIBOR + 1/8 percent or at the six-month Treasury-bill rate + ½ percent. Specified its asset structure, LIBOR is the preferred index. Comp
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If the cost benefit of interest rate swaps would probably be arbitraged away in competitive markets, what other explanations present to explain the rapid development of the interest rate swap market?All kinds of debt instruments are not always o
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Find out expected return at last asset when return on the index and slandered devotion is given?
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