Efficient market theory


Question 1:

How do technicians and random-walk advocates vary in their view of the stock market?

Question 2:

Explain in brief the tests of weak form, semi-strong and strong form of proficient market hypothesis.

Question 3:

Illustrate the connection between the efficient-market hypothesis and the studies of mutual-fund performance?

Question 4:

Describe the implications of the serial-correlation tests for:

a) The random-walk theory
b) Technical analysis
c) Fundamental analysis

Question 5:

What series of events might bring regarding an efficient market?

Question 6:

Does the random-walk theory recommend that security price levels are random? Describe.

Question 7:

How is technical analysis usually regarded in the academic literature? Explain why? What do technical analysts have to say regarding this?

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Marketing Management: Efficient market theory
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