Answer to Question 1: Efficient Market Hypothesis was firstly brought forward by E. Fama in 1960s. Its main believing is in that security prices fully reflect all available information in an efficient market‚ which allows investors to earn no above average risk-adjusted return (Fama‚ 1965). Although some technical studies and opportunistic investors have stretched hard in searching for proofs to challenge the efficient market hypothesis‚ and to prove above average returns could be gained by predicting
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Empirical Relationship between Trading Volumes & Stock Return Volatility in Indian Stock Market Naliniprava Tripathy Associate Professor (Finance)‚ Indian Institute of Management Shillong Meghalaya‚ India‚ PIN 793 014 E-mail: nalini_prava@yahoo.co.in/ nt@iimshillong.in Tel: +91-364-2308037‚ Fax: +91-364-2230041 Abstract This study investigates the empirical relationship between trading volume and stock returns volatility in Indian stock Market during the period from January 2005 to January 2010 by
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Efficient market hypothesis (EMH)‚ first promulgated by Eugene F. Fama (1970)‚ suggests that financial markets price assets precisely at their intrinsic worth given all publicly available information. Though several empirical works strongly confirm market efficiency‚ some of the hypotheses do not agree with the efficient market hypothesis‚ such as behavior finance hypothesis. This essay will discuss the assumption of efficient market hypothesis and implications when these assumptions do not hold
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Maximizing Profits in Market Structures The subject matter of competitive markets can be complex with many extraneous details that can make all the difference between being a perfect competition‚ monopolistic competition‚ a monopoly‚ or an oligopoly. Each of these types of markets have specific characteristics and economic market effects that include entry barriers‚ price and output determination to produce the most profits for any given business or company. Even though these differences may
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org/product/jaguar-plc-1984/an/290005-PDF-ENG?Ntt=Jaguar%2520plc%252C%25201984 Case Questions 1. Consider Jaguar’s exchange rate exposure. To which currencies is Jaguar exposed? What are the sources of these exposures? How would the company be affected by a 25% decline in the value of the dollar? 2. How should Jaguar’s shares be priced? Estimate the likely value of Jaguar’s equity in the following scenarios: a. no change in the real exchange rate between the dollar and the pound‚ b
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History of West Kevin Capuder U.S. Stock Market Crash in 1987 Ana Barbakadze‚ Mariam Jakeli This paper contributes to the overview of U.S. Stock Market Crash of 1987 and it explores the major causes and effects of this crash. According to the Reuters‚ the crash of 1987 is included in the top five “major stock market crashes” (Narayana). Let us now define this term itself. Stock Market Crash associates with “A rapid and often unanticipated drop in stock prices”(Investopedia). As we can see
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EFFICIENCY OF AFRICAN STOCK MARKETS DESCRIBED AS WEAK? INTRODUCTION About two-thirds of African stock markets emerged in the late 1980s and early 1990s. The latest arrival is the Douala Stock Exchange in Cameroon‚ which was established in 2003‚ making it the youngest stock market on the African continent. Most of these markets were formed at the instigation of government to act as vehicles to privatize state-owned enterprises (Mlambo‚ Biekpe‚ 2001; Moss‚ 2004). African stock exchanges are also
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MARKET OPPORTUNITY ANALYSIS Market Opportunity Analysis is a prime tool to determine attractiveness and probability of success in the growing market. It helps in understanding: • It is important for companies to evaluate opportunities so as to grow their business and to sustain in a competitive world where competitors Following is the Opportunity Matrix that can be used to analyze opportunity. | |Success Probability | | |
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INDIAN STOCK EXCHANGE. A few men‚ started one association under a banyan tree for trading some commodity/security in 1875 !! Who knew at that time that it would grow and would become NSE/BSE? Interesting? Read some finest events and milestones of Indian Stock Exchange. To study the history of the capital market in India we have to look back in eighteenth century when East India Company started security trading in India. Security trading in India was unorganised during that time. Until the end
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1. Overview and purposes of settlement procedure. The clearing and settlement process is a series of complex tasks that begin with trade confirmation and continue through the clearing process up to the actual settlement of a trade. Clearing and settlement is the final step for analyzing the trading process. All of its processes and procedures are specified in the Guideline on Securities Clearing and Settelement promulgated with Decision No.57/QD-VSD dated 8 May 2012 by Chief Executive Officer of
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