Efficient Market Hypothesis Flashcards
1
Q
assumptions
A
Large number of investors
New information arrives randomly
Prices adjust quickly
Prices reflect all available information
2
Q
Information Sources
A
Price / Volume
Fundamental (quarterly reports)
Exogenous (outside world info that affects company)
Insiders (people inside the organization)
3
Q
Weak EMH
A
Future prices cannot be predicted by analyzing historical prices
4
Q
Semi Strong
A
Future prices cannot be predicted by fundamental information
5
Q
Strong
A
Future prices cannot be predicted with insider information