Define the efficient markets hypothesis

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1. At an activity level of 30,000 units produced, variable costs total $45,000 and fixed costs total $15,000. What would be the amount of total costs if 25,000 units are produced, assuming that this activity level is within the relevant range?

2. Compare and contrast the Farma-French model with CAPM. Be sure to also explain why each one could be considered superior or inferior to the other.

3. Define the efficient markets hypothesis. Explain how the idea of stocks following a random walk fits the efficient markets hypothesis (you'd want to start by defining random walk). Do you think financial markets are efficient? Explain why or why not.

Reference no: EM131878430

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