Discussion Question 1 – CLO 1 CLO 3 CLO 4 CLO 5 CLO 6 CLO 7 CLO 8 Please answer the following questions in detail provide examples whenever applicable provide in-text citations. The efficient-market hypothesis assumes that
a. There are no taxes.
b. There is perfect foresight.
c. Successive price changes are independent.
d. Investors are irrational.
e. There are no transaction costs.
f. Forecasts are unbiased.
3. Does the statement “mutual fund X has had superior performance for each of the last 10 years†contradict the efficientmarket hypothesis?
4. Financial markets and intermediaries channel savings from investors to corporate investment. The savings make this journey by many different routes. Give a specific example for each of the following routes: State if each of the following statements is true or false. Justify your answers. Evaluate each of the following statements: “The random-walk theory with its implication that investing in stocks is like playing roulette is a powerful indictment of our capital markets.†“If everyone believes you can make money by charting stock prices then price changes won’t be random.†“The random-walk theory implies that events are random but many events are not random. If it rains today there’s a fair bet that it will rain again tomorrow.†If fund X is the only fund calculate the probability that only by chance it would have achieved superior performance for each of the past 10 years. Now recognize that there are nearly 10000 mutual funds in the United States. What is the probability that by chance there is at least 1 out of 10000 funds that obtained 10 successive years of superior performance? Investor to financial intermediary to financial markets and to the corporation. Investor to financial markets to a financial intermediary and to the corporation. Investor to financial markets to a financial intermediary back to financial markets and to the corporation. If fund X is the only fund calculate the probability that only by chance it would have achieved superior performance for each of the past 10 years.Now recognize that there are nearly 10000 mutual funds in the United States. What is the probability that by chance there is at least 1 out of 10000 funds that obtained 10 successive years of superior performance?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more