Discuss the statistical evidence concerning the efficient markets hypothesis
The evidence indicates that stock prices may not follow a random walk exactly, but they are pretty close. The correlation between how well a stock does one year and how well it does the next is close to zero. Indexed funds tend to perform better than most managed funds. However, there is some evidence that people may become overconfident in their abilities and this may lead to the overvaluation of stocks.
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In order to achieve a high economic freedom rating, a country must
a. provide secure protection of privately owned property and evenhanded enforcement of contracts. b. refrain from creating barriers that limit domestic and international trade. c. rely more fully on markets rather than governments to allocate goods and resources. d. all of the above.
How does a change in investment spending affect aggregate demand?
What will be an ideal response?