analysis of EMH

Essay specific features

 

Issue:

Business

 

Written by:

John J

 

Date added:

March 3, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

9 / 2429

 

Was viewed:

1812 times

 

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Essay content:

Thus, no investor has a benefit in predicting a return on a stock price since no one has access to information not already available to everyone else. In an efficient market buying and selling securities in an attempt to outperform the market will effectively be a game of chance rather than skill. According to Fama, Efficient market is a market which adjusts rapidly to new information...
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It is a market in which prices fully reflect available information. (Fama, 1969) If the market is efficient, news about the stock should be reflected immediately in the price. The EMH is associated with the idea of a "random walk," which implies that the next move of the speculative price is independent of all past moves or events, so historic prices are of no value in predict future prices...
displayed 300 characters

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