INVESTMENTS Fourth Edition EMH and competition a Stock prices fully and accurately reflect publicly available information Once information becomes available. market articipants analyze it Competition assures prices reflect information
INVESTMENTS Fourth Edition Stock prices fully and accurately reflect publicly available information Once information becomes available, market participants analyze it Competition assures prices reflect information EMH and Competition EMH and Competition
INVESTMENTS Fourth Edition Forms of the emh ■Weak ■Semi- strong a Strong
INVESTMENTS Fourth Edition Weak Semi-strong Strong Forms of the EMH Forms of the EMH
INVESTMENTS Fourth Edition T'ypes of market efficienc a The weak-form of efficiency: price accurately reflect all information that can be derived by examining market trading data such as past prices, trading volume, short Interest rate. etc The semistrong form of efficiency: prices accurately reflect all public available information, including past prices fundamental dat on the firm's product line, quality of management, balance sheet composition, patens held, earning forecasts, accounting practice, etc The strong form of efficiency: prices accurately reflect all information that is known by any one, including inside information
INVESTMENTS Fourth Edition Types of market efficiency Types of market efficiency The weak-form of efficiency: price accurately reflect all information that can be derived by examining market trading data such as past prices, trading volume, short interest rate, etc. The semistrong form of efficiency: prices accurately reflect all public available information, including past prices, fundamental dat on the firm’s product line, quality of management, balance sheet composition, patens held, earning forecasts, accounting practice, etc. The strong form of efficiency: prices accurately reflect all information that is known by any one, including inside information