TheEfficientMarketHypothesis幻灯片.pptVIP

CHAPTER 11;Maurice Kendall (1953) found no predictable pattern in stock prices. Prices are as likely to go up as to go down on any particular day. How do we explain random stock price changes? ;Efficient Market Hypothesis (EMH);Efficient Market Hypothesis (EMH);Figure 11.1 Cumulative Abnormal Returns Before Takeover Attempts: Target Companies;Figure 11.2 Stock Price Reaction to CNBC Reports;Information: The most precious commodity on Wall Street Strong competition assures prices reflect information. Information-gathering is motivated by desire for higher investment returns. The marginal retur