Efficient Market Hypothesis v’s Behavioural Finance An efficient market is one in which share prices quickly and fully reflect all available information‚ where investors are rational‚ and there are no frictions. Investors determine stock prices on the basis of expected cash flows to be received from a stock and the risk involved. Rational investors should use all the information they have available or can reasonably obtain‚ including both known information and beliefs about the future. In an efficient
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Discuss: “The concept of efficient diversification implies that for an investor wishing to efficiently assume risk in their portfolio; the risky part of the portfolio should consist of weighted proportions of all possible risky assets.” Abstract: Minimizing investor’s portfolio risk was a dominant goal influencing decision making of investment. The effective method of reducing risks was to efficient diversifying the portfolio. The author’s purpose in this article was to share thoughts and concerns
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company’s equity beta. One way to do this is to treat the equity beta as an average of the betas of several different areas of proxy company activity‚ weighted by the relative share of the proxy company market value arising from each activity. However‚ information about relative shares of proxy company market value may be quite difficult to obtain. A similar difficulty is that the ungearing of proxy company betas uses capital structure information that may not be readily available. Some companies have complex
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Porter set out to define a strategic model to which all companies conform. He maintained that failing to fit into one of his pre-defined categories “the firm stuck in the middle is almost guaranteed low profitability.” (Porter‚ 1980). The pre-defined categories are noted in appendix 1. Apple Inc. falls under a differentiation strategy‚ “Differentiation is the ability of the firm to provide unique and superior value to the buyer in terms of product quality‚ special features‚ or after-sale services”
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Efficient Market Hypothesis And Behavioral Finance – Is A Compromise In Sight? By Nikolai Chuvakhin Legend has it that once upon the time two economists were walking together when one of them saw something that struck his mind. “Look‚” he exclaimed‚ “here’s a great research topic!” “Nonsense‚” the other one said‚ “If it were‚ someone would have written a paper on it by now.” For a long time this attitude governed the view of economists toward the stock market. Economists simply believed that
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Wikipedia is sustained by people like you. Please donate today. Benchmarking From Wikipedia‚ the free encyclopedia This article may require cleanup to meet Wikipedia’s quality standards. Please improve this article if you can. (April 2007) This article is about the business term. For the geolocating activity‚ see Benchmarking (geolocating). For other uses of the term‚ see Benchmark. Benchmarking is the process of comparing the business processes and performance metrics including cost‚ cycle time
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minimum efficient scale (MES)The minimum efficient scale (MES) is the output for a business in the long run where the internal economies of scale have been fully exploited. It corresponds to the lowest point on the long run average total cost curve and is also known as the output of long run productive efficiency. The MES is rarely a single output - more likely it is a range of output levels where average cost is minimized where the firm achieves constant returns to scale. The MES will vary from
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to open and operate a smaller format store giving them one of many competitive edges. Another competitive edge is Subway allows its franchise to choose their own food suppliers‚ to ensure they can access the freshest ingredients from their local markets. This gives Subway a competitive advantage by enabling them to produce nutritious sandwiches with the freshest ingredients. Hence their catch advertising tagline – “Subway – eat fresh.” A big reason for Subway’s efficiency success is due in
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American Finance Association Efficient Capital Markets: A Review of Theory and Empirical Work Author(s): Eugene F. Fama Source: The Journal of Finance‚ Vol. 25‚ No. 2‚ Papers and Proceedings of the Twenty-Eighth Annual Meeting of the American Finance Association New York‚ N.Y. December‚ 28-30‚ 1969 (May‚ 1970)‚ pp. 383-417 Published by: Wiley for the American Finance Association Stable URL: http://www.jstor.org/stable/2325486 . Accessed: 02/08/2014 05:59 Your use of the JSTOR archive indicates your
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Events Competitive Environment The Commonwealth Games 2002 was a major hallmark event‚ held in Manchester over the period of ten days. Hiller‚(2002 p 449)describes a major hallmark event as "short-term high-profile events like Olympics and World Fairs that always have a significant urban impact. They re-prioritize urban agendas‚ create post-event usage debates‚ often stimulate urban redevelopment‚ and are instruments of boosterist ideologies promoting economic growth" Colin Hall states that
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