1. What are some of the anomalies to the Efficient Market Hypothesis?
2. How does technical analysis compare to fundamental analysis?
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1. What are some of the anomalies to the Efficient Market Hypothesis? 2. How does technical...
What are some of the anomalies to the Efficient Market Hypothesis?
Anomalies are unexplained empirical/research findings that contradict the Efficient Market Hypothesis. Required: What evidence has been found regarding the Size Effect and the Book-to-Market Ratio? Does this evidence support the Efficient Market Hypothesis? Discuss.
Briefly explain the concept of market anomalies in Efficient Market Hypothesis; also provide reasons why they do not disappear if markets are completely efficient. [4]
Please list three anomalies against Efficient Market Hypothesis. Explain the methods you will exploit the opportunities based on the listed anomalies respectively. (20%)
How does technical analysis compare to fundamental analysis?
Which of the following statements regarding the efficient market hypothesis is NOT accurate? Select one: a. The strong form state prices reflect all information, including public and private b. Semi strong form Implies that fundamental analysis will not lead to abnormal returns c. If the market is weak form efficient, then investors can earn abnormal returns by trading on market information d. Strong form Implies that technical analysis will not lead to abnormal returns e. All of the answers are...
1) Suppose a manager earns a positive alpha for a year of investing. Efficient market hypothesis explains this as: A. the manager got lucky. B. the manager took high risk. C. both (A) and (B) are true. D. none of the above 2) Suppose a manager earns a positive alpha for a year of investing. Efficient market hypothesis explains this as: A. the manager got lucky. B. the model of risk which produced the result was flawed or incomplete. C....
1, Efficient Markets Hypothesis (L02,CFA1) you invest $10,000 in the market at the beginning of the year, and by the end of the year your account is worth $15,000. During the year the market return was 10 percent . Does this mean that the market is inefficient?. 2,Geoffrey Henley, a professor of finance, states: The capital market is efficient. I dont know why anyone would bother devoting their time to following individual stock and doing fundamental analysis. the best approach...
*Plain words 1. What is an efficient market? 2. What does an efficient market look like? 3. How have interest rates impacted the securities market?
19) According to the efficient market hypothesis, a) Fundamental analysis that generates POSITIVE alpha violates STRONG form efficiency. b) Fundamental analysis that generates POSITIVE alpha violates WEAK form efficiency. c) Fundamental analysis that generates POSITIVE alpha violates SEMI-STRONG form efficiency. d) Both a) and c) are correct. e) Both b) and c) are correct.