Market Efficiency
(I need help explaining the following and/or demonstrating it for my upcoming exam if anyone could help me comprehend the concepts I would greatly appreciate it!!)
Explain the difference between observed market prices and intrinsic (unobservable) prices
Explain what makes a market “fair”
Define operational efficiency
Define informational efficiency (speed of info, accuracy of info, and accuracy of response to info)
Describe the key assumptions underlying Efficient Market Hypothesis (EMH)
Describe each of the three forms of Efficient Market Hypothesis (EMH):
Weak Form Efficiency
Semi-Strong Form Efficiency
Strong Form Efficiency
Describe the relationship between weak form efficiency and technical analysis
Describe the relationship between semi-strong form efficiency and fundamental analysis
Explain why strong form efficiency is not supported by empirical data
Define the Semi-Efficient Market Hypothesis (SEMH) and how it contrasts with EMH
Explain the two types of inside (private) information