Efficient Market Hypothesis

What does the efficient market hypothesis (EMH) say about securities prices, their reaction to new information, and investor opportunities to profit? What is the behavioral finance challenge to this hypothesis?

Do you personally believe the EMH argument or the behaviorist argument?

Introduction of DQ4 The efficient market hypothesis is an important concept, not only in Finance but also in this course. The behavioral finance challenge to the EMH is also very interesting and an important part of the reaction of stock markets to new information, both good and bad.  Just look at the reaction of the stock market to the Malaysian Airlines airliner shot down………..the markets dropped significantly that day on a global basis, but the following day, they bounced back dramatically, wiping out most of the previous day’s gains.

Efficient Market Hypothesis

There are many empirically based research studies proving, to the extent possible, that the EMH is real, and the market (stock market) efficiently reacts to new information, both good and bad, almost instantly when the information is released, or slowly over time, as the market ‘impounds’ the value of the information received into the stock prices.  I am looking forward to your DQ postings related to the EMH……………do a Google search on the EMH, and you will be inundated with information on this subject.

 

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Efficient market hypothesis

Efficient market

Task: In this assignment students have to conduct a comprehensive literature review on a research topic of their choice, in finance citing relevant academic literature. The literature review should focus upon the importance of the research area, a critical review of previous research and a summary of their empirical analysis. The assignment should conclude with the gaps in the previous literature that should be explored in the future. The assignment should be typed using 12 fonts with a word limit of 4000 words.

References should be allllll relevant and referenced in Harvard style i need more than 25 references and all relevant from books and journals ..

Plz make sure that the reference are not been taken from internet sources and i need a turnitin plagiarism check as well

assi

Efficient market hypothesis is the main topic but you have to have the specific title

For example Stock market efficiency finds a good title and the title will be the theory you will analyse and base your research and writing about it .

For example You can focus on informational efficiency in random walk in emerging markets or developed market.

Investigate Efficient market hypothesis

The question you will be asking yourself about :

· What is an Efficient market hypothesis

· What are the types

· How is the market efficient

· Fama theory ? what he said

· Other efficient market theory

· Outline you theory

· Identify a market that is efficient and why ?

For example Stock market efficiency finds a good title and the title will be the theory you will analyse and base your research and writing about it .

For example You can focus on informational efficiency in random walk in emerging markets or developed market or any good title .

We should look at paper that support it and other that disagree

The article has limitations or the method of the paper is doubtful in terms of …….

You have to use as many article as u can to support the theory and others to show that other theories say different things (for example 3 articles that support and 3 that disagree)

You don’t need to do empirical evidence; you have only to say what they said in his journal and copy their empirical tables in.

You have to criticise and evaluate the theories of the articles

What people say about the theory

First you have to read many article about the topic

Next you have to criticise each article

When you criticise them , dividing them into groups in terms of opinions in one way. For example. A and B have same conclusion , but this article have some limitation

You have to focus on the way the literature review is

Reccomendation

If there is any other further research need to be done or not

Conclusion

This is how you have to structure the literature review

Introduction
Your introduction should give an outline of

· why you are writing a review, and why the topic is important

· the scope of the review — what aspects of the topic will be discussed

· the criteria used for your literature selection (e.g.. type of sources used, date range)

· the organisational pattern of the review.

Body paragraphs
Each body paragraph should deal with a different theme that is relevant to your topic. You will need to synthesise several of your reviewed readings into each paragraph, so that there is a clear connection between the various sources. You will need to critically analyse each source for how they contribute to the themes you are researching.

The body could include paragraphs on:

· historical background

· methodologies

· previous studies on the topic

· mainstream versus alternative viewpoints

· principal questions being asked

· general conclusions that are being drawn.

Conclusion
Your conclusion should give a summary of:

· the main agreements and disagreements in the literature

· any gaps or areas for further research

· your overall perspective on the topic.

Checklist for a literature review
Have I:

· outlined the purpose and scope?

· identified appropriate and credible (academic/scholarly) literature?

· recorded the bibliographical details of the sources?

· analysed and critiqued your readings?

· identified gaps in the literature and research?

· explored methodologies / theories / hypotheses / models?

· discussed the varying viewpoints?

· written an introduction, body and conclusion?

· checked punctuation and spelling?

ntroduction
Your introduction should give an outline of

· why you are writing a review, and why the topic is important

· the scope of the review — what aspects of the topic will be discussed

· the criteria used for your literature selection (e.g.. type of sources used, date range)

· the organisational pattern of the review.

Body paragraphs
Each body paragraph should deal with a different theme that is relevant to your topic. You will need to synthesise several of your reviewed readings into each paragraph, so that there is a clear connection between the various sources. You will need to critically analyse each source for how they contribute to the themes you are researching.

The body could include paragraphs on:

· historical background

· methodologies

· previous studies on the topic

· mainstream versus alternative viewpoints

· principal questions being asked

· general conclusions that are being drawn.

Conclusion
Your conclusion should give a summary of:

· the main agreements and disagreements in the literature

· any gaps or areas for further research

· your overall perspective on the topic.

Checklist for a literature review
Have I:

· outlined the purpose and scope?

· identified appropriate and credible (academic/scholarly) literature?

· recorded the bibliographical details of the sources?

· analysed and critiqued your readings?

· identified gaps in the literature and research?

· explored methodologies / theories / hypotheses / models?

· discussed the varying viewpoints?

· written an introduction, body and conclusion?

· checked punctuation and spelling?

Grading critaria

Component

High Pass

Content

Content is relevant and well supported by details. Incorporates innovative insights.

Organization

Assignment is organized and well sequenced with smooth transitions. It previews, covers and develops main points, backed up by academic references.

Conclusion

Conclusion is clear, compelling, and supported by quality research and analysis. Includes a review of key points.

Presentation Values

The arguments are presented in a clear and comprehensive manner backed up by the relevant academic literature.

Overall Impact

The assignment is imaginative and effective in conveying ideas to the reader.

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