Efficient market hypothesis
Accompany decides to undertake amajor capital investment. The investment will be in afive year project and over the course of the five years the company's directors believe that the net profits will add $125 million to the valve of the company's shares. The company made the decision to invest on 1st October year1 and the first year of profits from the investment will be year2 . It announces the investment and the expected benefits to the stock market on 1st December. It is assumed that the stock market investors believe the company's estimate that the project will add $125 million to share values. Analyse the investment using the three EMH forms.
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