Excerpt
Table of contents
LIST OF ABBREVIATIONS
LIST OF FIGURE
EXECUTIVE SUMMARY
1. INTRODUCTION
2. EFFICIENT MARKET HYPOTHESIS
2.1 MARKET EFFICIENCY
2.2 THREE LEVELS OF EFFICIENT MARKETS
2.3 MYTH ABOUT THE EMH
3. INFORMATION ABOUT EMPIRICAL RESULTS
4. IMPLICATIONS OF THE EMH FOR INVESTORS
4.1 WHEN THE WEAK-FORM OF THE EMH HOLDS
4.1.1 Technical Analysis is useless
4.2 WHEN THE SEMI-STRONG-FORM OF THE EMH HOLDS
4.2.1 Fundamental Analysis is useless
4.2.2 The study of published accounts is useless
4.2.3 The most tips are worthless
4.2.4 The search for undervalued companies is useless
4.2.5 Portfolio diversification is important to reduce non-systematic risk
4.2.6 Transaction costs should be as low as possible
4.2.7 Unit Trusts do not perform better than their beta
4.3 WHEN THE STRONG-FROM OF THE EMH HOLDS
4.3.1 Insider information are useless
5. IMPLICATIONS OF THE EMH FOR MANAGER
5.1 ACCOUNTING DISCLOSURE TO DECEIVED SHAREHOLDERS IS USELESS
5.2 MARKET VALUE AS INDICATOR FOR COMPANY VALUE AND MANAGEMENT DECISIONS
5.3 COMPANIES DO NOT NEED SPECIALISTS FOR THE TIMING OF NEW ISSUES
5.4 THERE ARE NO OPPORTUNITIES FOR A CHEAP ACQUISITION
6. CONCLUSION
7. BIBLIOGRAPHY
- Quote paper
- Sascha Kurth (Author), 2011, Critical Review about implications of the Efficient Market Hypothesis, Munich, GRIN Verlag, https://www.grin.com/document/180788
Similar texts
Publish now - it's free
Comments