Discuss how you would test the strong form EMH. Why are these tests relevant?
What will be an ideal response?
Ans: The strong-form efficient market hypothesis goes beyond the semistrong-form in that it calls for perfect markets, meaning that no group of investors has monopolistic access to information. Thus, tests for the strong-form efficient market hypothesis would center around examining whether any group has monopolistic access to information and can consistently obtain above average profits by using it. Four groups of investors have been featured in these tests: corporate insiders, the stock exchange specialist, security analysts, and professional money managers.
You might also like to view...
FICA tax becomes a liability to the federal government at the time an employee's payroll is prepared
a. True b. False Indicate whether the statement is true or false
Write a brief note on the role of television as an advertising medium
What will be an ideal response?
Minors are generally held liable on a quasi contract basis for the reasonable value of necessaries furnished to them.
Answer the following statement true (T) or false (F)
Incidental costs for acquiring merchandise inventory, such as import duties, freight, storage, and insurance, should not be added to the cost of inventory.
Answer the following statement true (T) or false (F)