fintmed - 1.) Burton Malkiels paper, the efficient market...

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1.) Burton Malkiel’s paper, the efficient market hypothesis and its critics, has two primary concerns that the he is trying to bring about, one is if the market is efficient hence the efficient market hypothesis and the other is if the market is predictable. Burton came up with the conclusion that the markets, particularly stock markets, are efficient and not much predictable with the help of several other researchers that studied the stock market for several years. These studies served as the backbone for Burton’s claims. He tackled different issues that surfaced in the market regarding the price patterns of stocks that might help investors to determine if there will be high returns or on the other side, the price are random and independent from the previous records. One example is the “January effect,” in which the prices of stocks are higher in early January compared to other seasons, after it was made known to the public; this effect disappeared so the pattern is not really credible as they
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This note was uploaded on 08/24/2011 for the course ME 109 taught by Professor Mrquant during the Spring '11 term at Ateneo de Manila University.

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fintmed - 1.) Burton Malkiels paper, the efficient market...

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