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my Q is queation 5 efficient market hypothesis . thank you Chapter 12 Some Lessons from Capital Market History 5. Efficient Mark mispriced stocks by

my Q is queation 5 efficient market hypothesis . thank you image text in transcribed
Chapter 12 Some Lessons from Capital Market History 5. Efficient Mark mispriced stocks by Markets Hypothesis [LO4] A stock market analyst is able to identify riced stocks by comparing the average price for the last 10 days to the average ce for the last 60 days. If this is true, what do you know about the market? ang Efficiency (LO4] If a market is semistrong form efficient, is it also 6. Semistrong Effic weak form efficient? Explain. 7. Efficient Markets ! tent Markets Hypothesis [LO4] What are the implications of the efficient ste hypothesis for investors who buy and sell stocks in an attempt to "beat the market"? Stocks versus Gambling [LO4] Critically evaluate the following statement: Playing the stock market is like gambling. Such speculative investing has no social value other than the pleasure people get from this form of gambling. 9. Efficient Markets Hypothesis [LO4] Several celebrated investors and stock pickers frequently mentioned in the financial press have recorded huge returns on their investments over the past two decades. Is the success of these particular inves- tors an invalidation of the EMH? Explain. Efficient Markets Hypothesis [LO4] For each of the following scenarios, discuss whether profit opportunities exist from trading in the stock of the firm under the conditions that (1) the market is not weak form efficient, (2) the market is weak form but not semistrong form efficient, (3) the market is semistrong form but not strong form efficient, and (4) the market is strong form efficient. a. The stock price has risen steadily each day for the past 30 days. the financial statements for a company were released three days ago, and you eve you've uncovered some anomalies in the company's inventory and cost reporting techniques that are causing the firm's true liquidity strength to be understated. c. You observe that the company's stoc ve that the senior managers of a company have been buying a lot of the any's stock on the open market over the past week. QUESTIONS 1. Calculating Retur ONS AND PROBLEMS paid a dividend of $1.45 p BAS (Que $88. Compute the per Calculating Yields Lo urns (LO1] Suppose a stock had an initial price of $79 per share, $1.45 per share during the year, and had an ending share price of the percentage total return. As LO1] In Problem 1, what was the dividend yield? The capital Dans yield? um Calculati Price in ming the ending share

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