Essay sample - Applying the EMH Evaluate the Role That Government Played In Economic Recovery Using Recent Real-life Examples

Applying the EMH Evaluate the Role That Government Played In Economic Recovery Using Recent Real-life Examples Essay example
Masters
Essay
Marketing
Pages 11 (2761 words)
Download 0
The topic under review is of efficient market hypothesis under government intervention. This is a very important topic at the current juncture wherein most of the countries are under the scanner of financial crisis. There is not just enormous scope in the study of the given topic but also the need to understand the government intervention and management…

Introduction

This report stresses that market efficiency has been tested over a long period of time and it has been observed that movement of the stock prices follow a random walk. The random walk theory states that an investor can have a good chance of beating the market if they throw darts on New York Times stock listing pages. Investors who adhere to the random walk theory believe that searching for undervalued shares or predicting the future stock price is just a waste of time. Any new developments of government like restructuring the tax legislation, controlling the financial crisis and the inflation etc reflect in share prices of the different corporation. Followers of random walk theory believe that is impossible to predict future events and they are left with no other choice but to accept the efficient market hypothesis.
This essay makes a conclusion that it cannot be denied that the government interventions play a crucial role in stabilizing the economies that were overturned due to the financial crisis as result of devaluation of properties or inability to service the debt obligations. Due to the global crisis, the investor confidence eroded which had adverse impact on the stock prices. The fluctuation in the stock prices was also due to drift in the present market condition. As a result of revised regulations and containing policies by the government, the economies started to revive and the interest of the investors were protected. This resulted in the decrease in volatility of share prices which reflects belief of the investors from their anticipation of future events in the economy. This follows the efficient market hypothesis. ...
Download paper
Not exactly what you need?

Related papers

How has the UK retail sector adapted to recent changes in the economic climate effectively?
The Global Financial Crisis had a profound impact on almost all parts of the world. Millions of people around the world had to change their lifestyles, many financial institutions went bankrupt, thousands of employees lost their jobs, many people ended up living on the streets, governments in most part of world had to interfere, with bail out plans regardless of the fact that how capitalistic and…
23 pages (5773 words)
How has the UK retail sector adapted to recent changes in the economic climate effectively?
The economic cycle or business cycle faces different phases that include slump, recession, recover and boom. During the last decade, the world witnessed turmoil in global market in the form of financial crisis that resulted in adverse impacts on almost every country of the world. Companies face different market circumstances in different phases and they react accordingly, In order to retain their…
54 pages (13554 words)
The Role America's Federal Reserve Played in Contributing to the Actions Leading to the 2008 Financial Crises
While the Federal Reserve is a cornerstone institution of the United States, critics have argued that in the long-term the Fed is actually bad for the economy. This research evaluates the extent that the Federal Reserve contributed to the actions leading to the 2008 financial crises. Analysis One of the most prominent critics of the Federal Reserve has been former Republican Presidential candidate…
10 pages (2510 words)
'Marketing is all about creating value' Using both critical analysis and practical examples, examine the extend to which creat
These models reveal the effective value creation of brand communities, thus contributing to successful business performance. Creating value to customers is an effective means that will enable an organization to achieve a competitive advantage in the global competitive market. Moreover, the strategy of the company of designing superior products is based upon value creation. Therefore, understanding…
8 pages (2008 words)
Critically analyse Qatar Government using two different metaphors(They have been provided) from (Morgan's Images of Organizat
Dunford and Akin (2008) says that this approach allows the user to have two or more visions and perceptions about integral elements of a given situation. In the context of political organization analysis, users of multiple perspective tools can utilize techniques of multiple approach in minimizing ambiguities, and contradictions resulting from narrowed perception models. In its practical…
14 pages (3514 words)
Critically evaluate how the recent recession has been affecting strategic marketing management practices of Apple
By 1980 as the sales of the company were experiencing a high the company also grew considerably in size, by the time the Apple III was launched, the company employed several thousand people and was conducting international business (apple-history, 2013). Lisa and Macintosh are hall mark products of the Apple Company. During the 1980’s the Mac II gave the windows a really tough time, taking it to…
4 pages (1004 words)
Discuss, using examples, how the Internet may change Michael Porter's five competitive forces.
The introduction of computers and internet has significant effects on Porter’s five forces model. According to Poon (1997), global computer network has far-reaching abilities and is capable of reducing the normal business expenditure. This paper analyses how Internet may change Michael Porter’s five competitive forces. How the Internet may change Michael Porter’s five competitive forces?…
5 pages (1255 words)