Investments
Investments
11th Edition
ISBN: 9781259277177
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 11, Problem 2PS
Summary Introduction

Adequate Information:

Microsoft has consistently generated large profits for years

To construct:

Whether successful firm like Microsoft that has generated consistently large profits a violation of EMH

Introduction:

EMH or Efficient Market Hypothesis defines that stock prices reflect all the relevant information available in the market thereby reflecting a fair market value. No one can predict stock market accurately as it follows a random walk.

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