Explain the benefits of applying concepts from other social sciences to the behavior of securities prices.

 Financial Institutions and Markets: Discussion Board week 5

Interactive activity

Explain the efficient market hypothesis.

  • Summarize the evidence for and against the efficient market hypothesis.
  • Indicate and justify the optimal investment strategy based on the efficient market hypothesis.
  • Relate the stock market crashes of 1987 and 2000 to the strong and weak versions of the efficient market hypothesis.
  • Explain the benefits of applying concepts from other social sciences to the behavior of securities prices.

5.2 Action Required:

 

Watch this short video:

 

 

5.3 Test your Knowledge (Question):

Summarize the efficient market hypothesis in your own words.

5.4 Instructions

  • Please Avoid plagiarism, the work should be in your own words
  • minimum words 200.