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Assumptions underlying efficient market hypothesis

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Reference no: EM131016020

Market Efficiency

(I need help explaining the following and/or demonstrating it for my upcoming exam if anyone could help me comprehend the concepts I would greatly appreciate it!!)

Explain the difference between observed market prices and intrinsic (unobservable) prices

Explain what makes a market “fair”

Define operational efficiency

Define informational efficiency (speed of info, accuracy of info, and accuracy of response to info)

Describe the key assumptions underlying Efficient Market Hypothesis (EMH)

Describe each of the three forms of Efficient Market Hypothesis (EMH):

Weak Form Efficiency

Semi-Strong Form Efficiency

Strong Form Efficiency

Describe the relationship between weak form efficiency and technical analysis

Describe the relationship between semi-strong form efficiency and fundamental analysis

Explain why strong form efficiency is not supported by empirical data

Define the Semi-Efficient Market Hypothesis (SEMH) and how it contrasts with EMH

Explain the two types of inside (private) information

Reference no: EM131016020

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