Describe the results of a study that did not support the

Question

Question 1: Discuss the rationale for expecting an efficient capital market. What factor would you look for to differentiate the market efficiency for two alternative stocks?

Question 2: Define and discuss the weak-form EMH. Describe the two sets of tests used to examine the weak-form EMH.

Question 3: Define and discuss the semi strong-form EMH. Describe the two sets of tests used to examine the semi strong-form EMH.

Question 4: What is meant by the term abnormal rate of return?

Question 5: Describe the results of a study that supported the semi strong-form EMH. Discuss the nature of the test and specifically why the results support the hypothesis.

Question 6: Describe the results of a study that did not support the semi strong-form EMH. Discuss the nature of the test and specifically why the results did not support the hypothesis.

Question 7: Define and discuss the strong-form EMH. Why do some observers contend that the strong-form hypothesis really requires a perfect market in addition to an efficient market? Be specific.

Question 8: Describe the results of a study that did not support the strong-form EMH. Discuss the test involved and specifically why the results reported did not support the hypothesis.

Question 9: Describe the general goal of behavioral finance.

Question 10: What does the EMH imply for the use of technical analysis?

Question 11 What does the EMH imply for fundamental analysis? Discuss specifically what it does not imply?

Question 12: In a world of efficient capital markets, what do you have to do to be a superior analyst? How would you test whether an analyst was superior?

Answer 1

Discuss all the questions illustrated below in detailed essay format by using Times New Roman font and following the APA standards. Q1. Describe the rationale for predicting an effective capital market. Determine the factor which would you look for to distinguish the market efficiency for 2 alternative stocks? Q2. Define and describe the weak-form EMH. Illustrate the 2 sets of tests employed to analyze the weak-form EMH. Q3. Define and describe the semi strong-form EMH. Illustrate the 2 sets of tests employed to analyze the semi strong-form EMH. Q4. Write the meaning of the term abnormal rate of return? Q5. Illustrate the results of a study which supported the semi strong-form EMH. Describe the nature of test and particularly why the outcomes support the hypothesis. Q6. Illustrate the results of a study which didn’t support the semi strong-form EMH. Describe the nature of test and particularly why the outcomes didn’t support the hypothesis.