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In the context of the Efficient Market Hypothesis ( EMH ) , consider, separately, the following statements / sentences ( that are components of a
In the context of the Efficient
Market Hypothesis EMH consider, separately, the
following statementssentences that are components of a paragraph and explain the
theoretical errors that each of them contains:
The EMH says that share prices are always right
This is because shares move in a random fashion when new information is made public.
The only reason prices move is because of the new information contained in the
accounts when they are published.
Both technical and fundamental analysis serve no function.
Both technical and fundamental analysis cannot predict future prices.
Corporate fund managers cannot predict share prices either
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