Discussion 1&2 - The book discusses the Efficient Market

Question # 00834684 Posted By: wildcraft Updated on: 11/22/2022 09:42 PM Due on: 11/23/2022
Subject Finance Topic Finance Tutorials:
Question
Dot Image

DISCUSSION 1

The book discusses the Efficient Market Hypothesis (EMH) and its three forms. The EMH has a lot to do with information and stock prices.

· How does information get into prices?

· How do we know if prices reflect all available information?

· What are abnormal returns?

· What does the EMH have to say about abnormal returns?

DISCUSSION 2

We all remember the story about Martha Stewart, who was accused of insider trading.  If not, take a moment to research this incident, then answer the following:

· Why is it illegal to trade stocks based on inside information?

· Other than Martha Stewart, provide an example of someone who was trading stocks on inside information.

Dot Image
Tutorials for this Question
  1. Tutorial # 00830131 Posted By: wildcraft Posted on: 11/22/2022 09:43 PM
    Puchased By: 2
    Tutorial Preview
    The solution of Discussion 1&2 - The book discusses the Efficient Market...
    Attachments
    Discussion_12_-_The_book_discusses_the_Efficient_Market.ZIP (18.96 KB)

Great! We have found the solution of this question!

Whatsapp Lisa