Discuss the semistrong-form emh

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Define and discuss the semistrong-form EMH. Describe the two sets of tests used to examine the semistrong-form EMH.

What is meant by the term abnormal rate of return?

Describe how you would compute the abnormal rate of return for a stock for a period surrounding an economic event. Give a brief example for a stock with a beta of 1.40.

Assume you want to test the EMH by comparing alternative trading rules to a buy-and-hold policy. Discuss the three common mistakes that can bias the results against the EMH

Reference no: EM133041209

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