Efficient market hypothesis

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Provide a description of the three forms of the Efficient Market Hypothesis using the picture below.  Do you think the markets are efficient?

Look at the graph below.  It depicts the price adjustment at the time of the announcement of Martha's Stewart's conviction on Friday, March 5, 2004.

1668_Efficient Market Hypothesis.png

Revalue the call option using σ = 0 so that there is no volatility. All other input values for the option remain the same as in question 2.

Reference no: EM13200152

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