What is meant by an efficient capital market

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1) What is meant by an "efficient capital market?"

2) The conclusion that capital markets are efficient is born from three assumptions researchers make about capital markets. What are those three assumptions?

3) What are the three sub hypotheses of the efficient markets hypothesis? What does each one contend? Who can achieve supernormal profits under the assumptions of each sub hypothesis?

4) Which sub hypothesis of the EMH generally has strong empirical support? Which two sub hypotheses appear to have considerably less support?

Reference no: EM132641667

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