Stock prices should only respond to unexpected news and events.
this is because efficient financial markets assume that markets already reflect known information, so only response will be to unexpected news and events.
Are financial markets energy-efficient? First, define the term energy-efficient and then explain the answer. Be original, please.
true or false: the efficient market hypothesie says that financial markets are efficient- they have minimum operational costs of running the market.
1: True or False: The efficient markets hypothesis holds only if all investors are rational.False2: Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of financial markets determines the ability of investors to “beat” the market and earn excess (or abnormal) returns on their investments. If the markets are efficient, they will react rapidly as new relevant information becomes available. Financial theorists have identified three levels of informational efficiency that reflect what...
Discuss how efficient the U.S. financial markets are in pricing financial securities. Consider such questions as, "Are security prices reliable?", "What factors promote or reduce pricing efficiency?", and "How can we account for significant pricing fluctuations?
Discuss in 500 words or more how efficient the U.S. financial markets are in pricing financial securities. (Consider such questions as, "Are security prices reliable?", "What factors promote or reduce pricing efficiency?", and "How can we account for significant pricing fluctuations?")
Are the following statements true? Statement 1: If financial markets are not informationally efficient, they will not be allocationally efficient. Statement 2: Most tests of semistrong form efficiency are based on technical trading rules. A. Yes. B. No. Both are not true. C. No. Only statement 1 is true. D. No. Only statement 2 is true.
Efficient markets hypothesis Which of the following are consistent with the efficient markets hypothesis? Check all that apply. Changes in stock prices can be accurately predicted by investors. Changes in stock prices are impossible to predict. Stock markets reflect all available information about the value of stocks.
The efficient market hypothesis holds that financial markets price assets at their intrinsic worth, given all available information. This hypothesis is a key assumption to apply CAPM to estimate expected return of investment by passive investors. Which of the following forms of the efficient market hypothesis defines all available information as publicly announced (or available) one? 1.Weak 2.Semi-weak 3.Semi-strong 4.Strong
Prior to the GFC, former FED chair Alan Greenspan argued efficient financial markets do not need to be regulated. Explain why he was wrong and how you would propose to regulate banks. [Consider how money is created, bank behavior, and historical examples in your response].
Discuss Efficient Capital markets