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1. For question 1 to 4 below, which of the following phenomena would violate or be consistent with the Efficient market hypothes

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Answer #1

1. Violate

2. Violate

3. Violate

4. Consistent

Efficient market hypothesis (EMH) is a theory in financial economics which states that assets prices adopts all the available information immediately and it is impossible to beat the market. If market is efficient then all technical and fundamental analysis is useless even benefits from insider trading is not possible.

There are three form of EMH, Strong, Semi-strong and weak.

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

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