Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. how do you understand efficient market hypothesis(

How do you understand efficient market hypothesis(EMH), and why does it important?

60.1K

Verified Solution

Question

Finance

How do you understand efficient market hypothesis(EMH), and whydoes it important?

Answer & Explanation Solved by verified expert
3.7 Ratings (490 Votes)
Efficient Market Hypothesis assumes that the current price of security factors in all the information available and creating arbitrage opportunity is impossible and one cannot beat market returns There are 3 types of    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

How do you understand efficient market hypothesis(EMH), and whydoes it important?

Other questions asked by students

Q

Jason wishes to be able to receive $50,000 a year upon retirement, and he expects to...

Finance
Q

After 4 years, this company is expected to growth a slower but constant growth rate. To...

Finance
Q

Multiple-Step Income Statement On March 31, 2018, the balances of the accounts appearing in the ledger of...

Accounting
Q

Identify the type and number of local extrema 8 6 80 60 40 20 20...

Geometry
Q

Use long division to find the quotient and remainder.(3x - 14x - 5) (x...

Basic Math
Q

The unemployment rate in a city is 15 If 8 people from the city are...

Statistics
Q

In determining a corporation's taxable income for state income tax purposes, which of the following...

Accounting
Q

show work 4. Martha, a beneficiary, acquired property from a decedent. The...

Accounting
Q

Sales in December were $960,000. Projected sales for the first quarter of 20X0 are: January...

Accounting
Q

please calculate the cost of good sold for everything with FIFO method. Purchases:...

Accounting
Q

s 354 and 361 provide for the tax free treatment of shareholders and corporations involved...

Accounting
Q

H) A trial balance: options: Ensures that all transactions for the period have been recorded...

Accounting