Explain Weak-form deficiency in Efficient Markets Hypothesis
Explain Weak-form deficiency in Efficient Markets Hypothesis.
Expert
Weak-form efficiency: In weak-form efficiency excess returns can’t be made by using investment strategies based upon historical prices or the other historical financial data. If such form of efficiency is true then this will not be possible to make excess returns using methods like technical analysis. The trading strategy incorporating historical data, like price and volume information, will not systematically outperform a buy-and-hold strategy. This is frequently said that current prices accurately incorporate all historical information, and that current prices are the best estimation of the value of the investment. Therefore prices will respond to news, but when this news is random then price changes will also be random. Means technical analysis will not be profitable.
What is Value at Risk?
Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
What is trustworthy collateral from the lender's perspective? Explain whether accounts receivable and inventory are trustworthy collateral.
what happens to company when additional fund is not required?
What are the factors responsible for the recent surge in international portfolio investment?
Explain Capital Asset Pricing Model (CPM).
what are the factors resposible for the recent surge in international portfolio investment?
Explain the term REGARCH as of the GARCH’s family. Answer: REGARCH: It is a Range-based Exponential GARCH. It models the low to high ran
What are the Most Useful Performance Measures?
How are many platinum hedging types?
18,76,764
1934041 Asked
3,689
Active Tutors
1417463
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!