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"Efficient Market Hypothesis (EMH)" Please respond to the following: The book discusses the Efficient Market Hypothesis (EMH)...

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Finance

"Efficient Market Hypothesis (EMH)"

Please respond to the following:

  • The book discusses the Efficient Market Hypothesis (EMH) andits three forms. The EMH has a lot to do with information and stockprices. How does information get into prices? How do we know ifprices reflect all available information? What are abnormalreturns? What does the EMH have to say about abnormal returns?
  • Please provide one citation/reference for yourinitial posting that is not your textbook. Please do not useInvestopedia or Wikipedia.

Answer & Explanation Solved by verified expert
3.7 Ratings (578 Votes)
Under the EMH it is assumed that the current share price in the market reflects all information about the product or company in the market This means that any changes in the stock price of the company would reflect only the new changes in either the market    See Answer
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Transcribed Image Text

"Efficient Market Hypothesis (EMH)"Please respond to the following:The book discusses the Efficient Market Hypothesis (EMH) andits three forms. The EMH has a lot to do with information and stockprices. How does information get into prices? How do we know ifprices reflect all available information? What are abnormalreturns? What does the EMH have to say about abnormal returns?Please provide one citation/reference for yourinitial posting that is not your textbook. Please do not useInvestopedia or Wikipedia.

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