Efficient market hypothesis

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Let us assume the market is at equilibrium.

If the Marvel Cinematic Universe economy risk free rate is 6 percent. Assume that a investor offers you an investment opportunity which is risk free and will earn you 9 percent annually. What would you say about this investment opportunity?

Relate towards market efficiency and discuss scenarios? In terms of efficient market hypothesis, do any violate any forms?

- On a Tuesday of September 8th, the Phoenix Suns announced their CEO would step down in 2 days. When time came, stock price fell tremendously.

- Facebook's shares of stock start with a weekly price drop and towards the end of week, price increases.

- In the previous financial crisis, Crypto stock did not do so good. As the market this stock goes up when the market does down, and stock goes down when the market goes up.

Explain - market risk a measured by beta vs. total risk of asset measured by st. deviation. Which one would you choose when investing stocks? How about investing a market fund?

Reference no: EM133111235

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