Module 4 Discussion Topic: What does the efficient market hypothesis (EMH) say about securities prices, their reaction to new information, and investor opportunities to profit? What is the behavioral finance challenge to this hypothesis? Do you personally believe the EMH argument or the behaviorist argument? Introduction of DQ4
The efficient market hypothesis is an important concept, not only in Finance but also in this course. The behavioral finance challenge to the EMH is also very interesting and an important part of the reaction of stock markets to new information, both good and bad. Just look at the reaction of the stock market to the Malaysian Airlines airliner shot down………..the markets dropped significantly that day on a global basis, but the following day, they bounced back dramatically, wiping out most of the previous day’s gains. Efficient Market Hypothesis There are many empirically-based research studies proving, to the extent possible, that the EMH is real, and the market (stock market) efficiently reacts to new information, both good and bad, almost instantly when the information is released, or slowly over time, as the market ‘impounds’ the value of the information received into the stock prices. I am looking forward to your DQ postings related to the EMH……………do a Google search on the EMH, and you will be inundated with information on this subject. Requirements: Paragraphs
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more