fin320 - stock question

Business & Finance
Tutor: None Selected Time limit: 1 Day

"The Efficient Market Hypothesis"

Take a position on the following statement: Highly variable stock prices suggest that the market does not know how to price stocks. Support your answer with examples.

Jul 27th, 2015

Thank you for the opportunity to help you with your question! Hi, He observes that work expands so as to fill the time available for its completion.

the efficient market hypothesis suggest that it is always impossible to beat the market because the information is readily available to all investors and that stock efficiency causes existing stock prices to always include and reflect the all the relevant information so that no investor can take advantage to beat the market. highly variable stock prices always suggest that the stock price does not reflect the relevant information because we expect that when the market is efficient there should be no variability in the stock price.  A strong market reflect all the relevant information including historical information,current public information and all insider information and no investor can take advantage of any information because the market  is efficient.No, markets can be efficient even if some investors earn returns above the market average. Good example is Microsoft shares.

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Jul 27th, 2015

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Jul 27th, 2015
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Jul 27th, 2015
Feb 21st, 2017
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