Chapter 8, Problem 9CP

Summary Introduction

(A)

TO EXPLAIN: Efficient Market Hypothesis and its forms and also discuss the degree to which existing empirical evidence supports each form of Efficient Market Hypothesis.

Introduction:

Efficient market hypothesis is a theory for investment where prices of shares reflect all the information and it is impossible to get risk adjusted returns consistently.

Summary Introduction

(B)

To explain implications of efficient market hypothesis as it applies to technical analysis in the form of charting and fundamental analysis.

Introduction:

Technical analysis and fundamental analysis is a methodology to forecast the direction of prices of traded securities.

Summary Introduction

(C)

To explain: the roles and responsibilities of portfolio managers in efficient market environment.

Introduction:

A portfolio manager is the person who helps an individual to invest in best available investment.