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Burton Malkiel in A Random Walk Down Wall Street argues that a blindfold monkey throwing darts at a newspaper's financial pages could select a

Burton Malkiel in A Random Walk Down Wall Street argues that " a blindfold monkey throwing darts at a newspaper's financial pages could select a portfolio that would do just as well as one carefully selected by experts" what does it mean? discuss.

Assume that markets are semi-form efficient. Provide three ways by which a professional can still "beat" the market explain.


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Bed Bath & Beyond shares jump as much as 78.8% after legendary mems stock investor's latest bet.

The stock rose as much as 78.8%to $28.60 a share during the Tuesday session... Shares in Bed Bath & Beyond surged more than 70% on Tuesday as retail investors on social media flocked to the stock after a filing revealed activist investor Ryan Cohen is holding steady on his bet.


Question: Relate to this ideal market assumptions. Does it violate any assumption(s)? Explain.

 

Explain how ownership structure (ie. who owns how many shares) is one area that needs to be closely studied ( or monitored) to detect potential agency problems.

 

 Discuss why executive compensation is more about "carrots" than "sticks". how can we overcome this problem?

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