Efficient Market Hypothesis Flashcards

1
Q

assumptions

A

Large number of investors
New information arrives randomly
Prices adjust quickly
Prices reflect all available information

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2
Q

Information Sources

A

Price / Volume
Fundamental (quarterly reports)
Exogenous (outside world info that affects company)
Insiders (people inside the organization)

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3
Q

Weak EMH

A

Future prices cannot be predicted by analyzing historical prices

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4
Q

Semi Strong

A

Future prices cannot be predicted by fundamental information

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5
Q

Strong

A

Future prices cannot be predicted with insider information

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