Efficient Capital Market Hypothesis Flashcards
1
Q
what does the random walk theory say?
A
that past movements in stock do not give you any way to predict the future movement of stock
2
Q
what is the weak form of the efficient capital market hypothesis?
A
is the random walk theory: past movements in stock do not give you any way to predict the future movement of stock
3
Q
what is the semi-strong form of the ECMH?
A
stock prices reflect all publicly available information
4
Q
which ECMH theory are all securities laws based on?
A
semi-strong from
5
Q
what is strong form of ECMH?
A
the stock price reflects both public and private information
6
Q
which ECMH do we not accept?
A
the strong form
