Strong proponent of efficient markets hypothesis

Assignment Help Financial Management

Reference no: EM132010314

Suppose you are a strong proponent of the efficient markets hypothesis. Respond in a few sentences to each of the following concerns with an arguement why the EMH may still hold.

• Many investors are irrational. Some may just irrationally like one particular stock or another.

• The dot-com bubble is a demostration of the failure of the EMH.

• There wouldn’t be so many people doing technical analysis for a living if it weren’t profitable.

• Maybe the institutional traders know all relavent information about a stock, but everyday investors who don’t work in the financial industry are uninformed.

Reference no: EM132010314

Questions Cloud

What is the annual growth rate of stock dividend expected : Court has one share of stock and one bond. What is the annual growth rate of the stock’s dividend expected to be?

Discount rate is appropriate for this stock : If a 6 percent discount rate is appropriate for this stock, what is its value today?

Share of stock of platinum water technology : Pablo owns one share of stock of Platinum Water Technology and one share of stock of Yellow Sand Entertainment.

Determinants of interest rate for individual securities : Determinants of Interest Rate for Individual Securities A 2-year Treasury security currently earns 6.75 percent.

Strong proponent of efficient markets hypothesis : Suppose you are a strong proponent of the efficient markets hypothesis.

What is the project npv : Rocky Mountain’s tax rate is 34 percent, and its opportunity cost of capital is 14.00 percent. What is the project's NPV?

Many analysts have claimed that beta coefficient : Many analysts have claimed that the Beta Coefficient is not a useful tool to measure the Historical Market Risk of Company's Stock.

What will the price be in four years and in sixteen years : Gilmore, Inc., just paid a dividend of $3.20 per share on its stock. What will the price be in four years and in sixteen years?

What would be the beta of your new portfolio : What would be the beta of your new portfolio?

User Account

All Pages