Reference no: EM133212206
Assignment:
Plzz provide answer according to this case:
Market efficiency means the degree to which market prices reflect all available and relevant information. Efficient Market Hypothesis (EMH) is theory in financial economics, which focuses on informational efficiency and measures whether the share prices reflect the available information. The presence of informational efficiency in the market will not provide an opportunity for the fundamental and technical investors to beat the market return. Hence, the researchers conducted the present study to examine whether the weak form of efficiency applies to the Muscat Securities Market, Oman using Runs test, Serial Correlation test and Unit Root test. The closing value of MSM 30 index and the closing share prices of the thirty companies representing MSM30 index for a period of 10 years i.e., from 1st Jan 2009 to 31st December 2018 were considered for the analysis. The results of the study will help the investor to understand whether technical analysis provides an opportunity to take better investment decisions.
In according to the above definition of EMH, the market prices should incorporate all available information at any point in time. However, the financial researchers make a distinction among three forms of market efficiency, based on the term "all available information".
Task 1. Introduce the term 'capital market' and it's different efficiencies with lifelong examples from Muscat Stock Exchange( MSE) or London Stock Exchange( LSE).
Task 2. Discuss Three forms of informational efficiencies and discuss the research findings using the above research article (attached).
Task 3. Explain the Assumptions of EMH and implications of EMH on investors and companies.