What is meant by the term abnormal rate of return

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Reference no: EM13910200

Question 1: Discuss the rationale for expecting an efficient capital market. What factor would you look for to differentiate the market efficiency for two alternative stocks?

Question 2: Define and discuss the weak-form EMH. Describe the two sets of tests used to examine the weak-form EMH.

Question 3: Define and discuss the semi strong-form EMH. Describe the two sets of tests used to examine the semi strong-form EMH.

Question 4: What is meant by the term abnormal rate of return?

Question 5: Describe the results of a study that supported the semi strong-form EMH. Discuss the nature of the test and specifically why the results support the hypothesis.

Question 6: Describe the results of a study that did not support the semi strong-form EMH. Discuss the nature of the test and specifically why the results did not support the hypothesis.

Question 7: Define and discuss the strong-form EMH. Why do some observers contend that the strong-form hypothesis really requires a perfect market in addition to an efficient market? Be specific.

Question 8: Describe the results of a study that did not support the strong-form EMH. Discuss the test involved and specifically why the results reported did not support the hypothesis.

Question 9: Describe the general goal of behavioral finance.

Question 10: What does the EMH imply for the use of technical analysis?

Question 11 What does the EMH imply for fundamental analysis? Discuss specifically what it does not imply?

Question 12: In a world of efficient capital markets, what do you have to do to be a superior analyst? How would you test whether an analyst was superior?

Reference no: EM13910200

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