. What does each of the three forms of the Efficient Markets Hypothesis say about each of thefollowing?a. Technical trading rules—that is, rules based onpast movements in the stockb. Fundamental analysis—that is, trying to identify undervalued or overvalued stocks based onpublicly available financial informationc. Insider tradingd. Hot tips from (1) Internet chat rooms, (2) closefriends unconnected with the company, or(3) close friends who work for the company

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
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. What does each of the three forms of the Efficient Markets Hypothesis say about each of the
following?
a. Technical trading rules—that is, rules based on
past movements in the stock
b. Fundamental analysis—that is, trying to identify undervalued or overvalued stocks based on
publicly available financial information
c. Insider trading
d. Hot tips from (1) Internet chat rooms, (2) close
friends unconnected with the company, or
(3) close friends who work for the company

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