A market is efficient with respect to a particular set of information if it is impossible to make abnormal profits - Essay Example

Only on StudentShare

Extract of sample
A market is efficient with respect to a particular set of information if it is impossible to make abnormal profits

Second part of the essay contains on a market conclusion about the practical behaviors of stock markets in relation with stock movements. This debate also include the information of the market behavior that in which circumstances an investor can make abnormal profits and in which conditions it is not possible to make abnormal gains and profits. It this part, debate is also made on the question that either market is efficient or not. The last part of this assignment is based on a general conclusion about this study. Topic: A market is efficient with respect to a particular set of information if it is impossible to make abnormal profits by using this set of information to formulate buying and selling decisions. The efficiency of the stock market is based on the efficient market hypothesis. Many investors believe that they can select stock with the help of their forecasting and valuation techniques and can make abnormal profits easily. On the other side the efficiency market hypothesis states that all the stock prices are based on all the accurate information and reflect the full and fair information. ...Show more


Behaviors of Stock Markets Date: Behaviors of Stock Markets Outline Introduction Market Behaviors Market Inefficiency Weak form efficiency Semi Strong form efficiency Strong form efficiency Practical researches on Capital markets Market Conclusions and practical situations Conclusion Bibliography Introduction The first part of this assignment is based on the efficiency of stock markets…
Author : hkuvalis
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"A market is efficient with respect to a particular set of information if it is impossible to make abnormal profits"
with a personal 20% discount.
Grab the best paper

Related Essays

Efficient Market Hypothesis: Is the Stock Market Efficient?
Efficient Market Hypothesis: Is the Stock Market Efficient? Introduction Efficient Market Hypothesis (EMH), introduced four decades ago, was the dominating theory in the academic community that explained how the financial market works. Nowadays, although it is challenged by both the theoretical and practical studies (e.g.
7 pages (1750 words) Literature review
Stock Market Efficiency
This academic proposal is being carried out to discover and establish whether the UK stock market is really efficient and to identify the trends in the UK stock market. From having a glimpse at the capital market from all over the world, UK capital market is one of diversified exchange marketplace that have come under consideration from the evaluation in the research.
33 pages (8250 words) Dissertation
Essay: Study on Efficient Market Hypothesis
Objective of this study is to critically examine different forms of efficient market efficiency, especially the weak or semi-weak form. There are empirical theories and models developed on this critical financial issue. Important theories like random walk hypothesis, fair game model have been discussed in this paper.
10 pages (2500 words) Essay
Efficient Market Hypothesis
Efficient market hypothesis stipulates that the prices of stocks in the money markets represent summation of all probabilities of all future consequences. The information available in the public domain is assumed to reflect stock prices in the money markets.
6 pages (1500 words) Essay
Efficient Market Hypothersis
Related to these practices is the understanding that their occurrence is directly connected to the regulatory environment that allowed for their occurrence. The drastic deregulation that occurred during this period is in part linked to a theoretical belief in market efficiency, as policymakers have been accused of having too great a faith that the market would undergo self-correcting behavior.
8 pages (2000 words) Essay
Efficient Market Hypothesis
The development of EMH goes back to the 1960s as Paul A. Samuelson and Eugene F. Fama developed their versions of EMH. Surprisingly, from two distinct research objectives both of them formulated independently the same central opinion of market efficiency. In contrast to Samuelson’s path to the EMH, Fama’s seminal papers (1965, 1969, 1970) were based on his concern in evaluating the statistical attributes of stock prices and in concluding the debate amongst technical and fundamental analysis.
4 pages (1000 words) Assignment
Corporate performance, abnormal profits and sectoral differences
There are many approaches used by economists and financial analysts to gauge the efficiency in which forms are utilizing their resources to generate income. Some assumes that performance of the firm is determined by industry in which it operate while others believe that performance of a firm is specific to its own internal factors (Lecture 4, 2012).
4 pages (1000 words) Essay
International trade is, therefore, an international exchange of a country’s product or services with another country. International trade contributes to a large portion of the Gross Domestic Product in many countries all over the world. In recent times, international trade has gained large importance in terms of social, political and economic aspects.
8 pages (2000 words) Essay
Personal Statement
I therefore, developed a natural interest in accounting and finance. Not only did my parents' association with this profession made me interested in Accounting and Finance, but I felt inclined towards courses that involved calculations and data management myself.
3 pages (750 words) Personal Statement
If accounting is to retain any credibility-and without credibility it is worthless - its guiding light must be neutrality in financial reporting (David Solomons, Accounting and social change: A neutralist view, Accounting, Organizations and Society,
Though the faithful representation of the economic phenomena may be a challenge at times for the accountant, it should always remain their goal. It
6 pages (1500 words) Essay
International Finance
The producers enter into future contracting so that they can control risks of unfavorable price fluctuations (Copeland, 2008) whereas, industrialists who are responsible for transforming raw
6 pages (1500 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email