EBK INVESTMENTS
EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 12, Problem 2PS
Summary Introduction

To determine: Security prices might be set efficiently.

Introduction:

The efficient market hypothesis is the modern financial theory, which reflects the information related to the price. In EMH, the stock should be traded at fair value.

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General Problems: Market volatility and bubbles. How can the problem of: Insider trading and market manipulation, Lack of transparency and information asymmetry, Inequality in access to capital, and Systemic risk from interconnected financial institutions be solved? How can practice or issue be improved?
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Efficient Market Hypothesis - EMH Explained Simply; Author: Learn to Invest - Investors Grow;https://www.youtube.com/watch?v=UTHvfI9awBk;License: Standard Youtube License