Suppose you are a strong proponent of the efficient markets hypothesis. Respond in a few sentences to each of the following concerns with an arguement why the EMH may still hold.
• Many investors are irrational. Some may just irrationally like one particular stock or another.
• The dot-com bubble is a demostration of the failure of the EMH.
• There wouldn’t be so many people doing technical analysis for a living if it weren’t profitable.
• Maybe the institutional traders know all relavent information about a stock, but everyday investors who don’t work in the financial industry are uninformed.