Security Analysis and Portfolio Management
Submitted To: Mr. Viney Kumar
Submitted by: Rahul Sharma 61-MBA-07 MBA 4th Sem The Business School 1
Bhaderwah
Topic for Presentation
Efficient
Market Hypothesis
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Efficient Market Theory It
states that the share price fluctuations are random and do not follow any regular pattern.
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Basic concept needed to be studied: Market
Efficiency 1.Operational Efficiency 2.Informational Efficiency
Liquidity
Trader
Information
Trader 4
Approaches to Valuation
Fundamental Analysis
Technical Analysis
Efficient Market Hypothesis
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In
1970 FAMA stated that efficient market fully reflect the available information. FAMA suggested the efficient market hypothesis can be divided into three categories: 1. Weak form of efficiency:- which absorb only past price. It says that current prices of stocks fully reflects all the information that is contained in historical sequence of prices 6
Semi
strong form: it says that current prices of stocks not only reflect all informational content of historical prices but also reflect all publicly available knowledge about the corporation
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Strong
form: it says that all the information is fully reflected on security prices. It represents an extreme hypothesis which most observers do not expect to be true.
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Bibliography Security
Analysis and Portfolio Management Pandia Punithavathy Page no: 283-290 Security Analysis and Portfolio Management V.A.Avadhani Page no:339-356 Security Analysis and Portfolio Management Donald.J.Fisher Page no:538-547
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