48 Joseph Gree n a stock analyst discovers that predictions

48. Joseph Gree n, a stock analyst, discovers that predictions about weather patterns published n advance and found in the Farmer\'s Almanac are amazingly accurate. In fac k curts predictions enable him to predict the healt prices. This finding is a violation of the: a. the random walk behavior of stock prices b. semi-strong form of the efficient market hypothesis. c. strong form of the efficient market hypothesis. d. weak form of the efficient market hypothesis e. None of the above h of the farm economy and therefore certain security 49. Alan Levy is he a th an attorney who works for the law firm Levy and Cohen, Inc. In his capacity corporate firms planning to sue other corporations for antitrust damages. He finds atto dvises at he can \"beat the market\" by short-selling the stock of the firm that will be sued. This finding is a violation of the: a. moderate form of the efficient market hypothesis. semi-strong form of the efficient market hypothesis c. strong form of the efficient market hypothesis. d. weak- form of the efficient market hypothesis e. random walk behavior of stock prices 50. Donald Hessel a stock analyst, discovers that for a certain group of stocks, large positive price changes are always followed by large negative price changes. This finding is a violation of the: a. moderate form of the efficient market hypothesis. b. semi-strong form of the efficient market hypothesis. c. strong form of the efficient market hypothesis. d. weak form of the efficient market hypothesis. e. None of the above.

Solution

48. This is a violation of - Semi strong form of the efficient market hypothesis (Because as per semi string form, all publicly available information is priced in and information not publicly available can be used to benefit investors. Here since Joseph green has done a fundamental analysis of publicly available information this is a violation of semi-strong form of efficiency)

49 This is a violation of - Strong form of efficient market hypotheses (Because as per strong form all information in a market, whether public or private, is accounted for in a stock\'s price. Since here there was some private information not factored in, we can say that this is violation of the strong form)

50. This is violation of - None of the above (Since he finds out that there is a large negative change after a large positive change this is actually a violation of random walk behaviour of stock prices. Since we do not have that as an option, we select none of the above)

 48. Joseph Gree n, a stock analyst, discovers that predictions about weather patterns published n advance and found in the Farmer\'s Almanac are amazingly accu

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