Efficient markets hypothesis and behavioural finance

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Reference no: EM133035899

"The markets are so crazy that behavioural finance must be the best explanation of market behaviour. Afterpay was worth less than $13 a share eighteen months ago, but now it is worth $130 a share and a takeover offer of $39b has been made for the firm. What's more it has never even made a profit. In addition, earlier this year we saw the strange happenings with the GameStop short squeeze episode. These happenings can't be representative of an efficient market."

Your task is to write a critical essay evaluating the arguments for and against the Efficient Markets Hypothesis (EMH) and behavioural finance. You should include a discussion of the above quote.

You will need to utilise existing literature (scholarly journals) on market efficiency and behavioural finance as well as real world examples to support your conclusion on market efficiency.

Reference no: EM133035899

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