A) How does the CAPM differ from the APT model? B) What is meant by an efficient market? What are the benefits to the economy from an efficient market?
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- 5- What does the Efficient Market Hypothesis tell us? Select one: a. That it is not possible for a market to be efficient. b. That the market is inefficient. c. That the market is efficient. d. How to recognise an efficient market. Clear my choice1: How efficient is the Efficient Market Hypothesis (EMH)?H5. Distinguish between active and passive investment management styles. What are the advantages of each approach? Which approach would a proponent of an efficient market tend to use? Why? Explain with details
- 1. what is the efficient market hypothesis. What does it say, if any, about individual financialbehavior? 2. Differentiate between fundamental and technicalanomalies.Compare M&M Theorem Proposition 1 and Proposition 2 in perfectly efficient market and in the real world.1. What’s the difference between fundamental analysis and technical analysis? Don’t simply define them both. 2. What’s the difference between the terms “intrinsic value” and “market price?” or in other words, what’s the difference between Value and Price?
- 10. The efficiency nature of a market, in which all public and private information is reflected in current market prices, is classified as A semi strong efficiency B weak form efficiency C strong form efficiency D None of above1. If the efficient market hypothesis is true, what are the implications for the investors?QUESTION 1 Which statement is true concerning alternative efficient market hypothesis? a. The semi-strong hypothesis encompasses the strong hypothesis. b. The strong hypothesis relates only to public information. c. The semi-strong hypothesis encompasses the weak hypothesis. d. The weak hypothesis encompasses the strong hypothesis. e. The weak hypothesis encompasses the semi-strong hypothesis.