Q4(c)

QUESTION 4 [TOTAL MARKS:20] Q4(a) [12 Marks] You have recently secured a position as a financial analyst with the Limerick accounting firm, Simenon & Associates. The managing partner, Mr George has asked you to prepare notes for him on certain financial topics for a meeting he intends to have with an important client of the firm. Mr George wants you to explain the meaning of the term 'Efficient market Hypothesis' (EMH) and the significance it may have for a financial advisory firm such as Simenon & Associates. Required: Draw up a report to the managing partner of Simenon & Associates, explaining the EMH and in your report distinguish between weak form, semi-strong form and strong form stock market efficiency. Q 4(b) [4 Marks) Briefly discuss the significance of the efficient market hypothesis (EMH) for the financial manager, Mr George Q 4(c) [4 Marks] Why is the EMH perceived by many financial theorists to be more important today than ever before. [End of Question 4]