Investments

Assignment 3: Market Efficiency Note: What I wrote down the stairs is just a quick draw of possible/ apt reactions. This assignment was basically a prayer of ten essays. So there is not really a right and defame answer. But there argon answers that micturate sense and most that do not. The ones below are near that make sense. 1. On TV, a stellar financial psychoanalyst was being interviewed by a journalist (CNN I believe). here is the conversation: give the stock-markets be split off if supply wins? First, my gut-feeling is that political leaders may weigh for individual stocks lots(prenominal) as oil stocks but it does not really matter for stock-markets overall. [As a really rough proof, the stock-market rarely moves by much than 1% about election result announcement date]. Hence, I dont expect the S&P 500 to be very sensitive to who is in the house, a priori. Now total the data. The question is now: is the difference statistically and economically pr odigious? Are there any outliers? This is curiously relevant because if a crash is random (like October 1987), then the chairperson has no big businessman over it and it will step to the fore that the chair with bad peril is a bad president for stocks; which would be inappropriate.

Of course, this raises the issue of what causes a crash and we dont really have an answer but it is reasonable [although salve debatable] to say that public constitution has a minor blow on a stock-market crash. In addition, the belief that the stock-markets are better-off at a lower place Republicans is not at quaint with the piece of evidence presented above. If investors prefer investing in stocks below Republicans, maybe because they perce! ive the stock-market to be less risky [or the miserliness to be less uncertain, company profits to be much protected, shareholder interests to be more protected], then they beseech a lower risk premium. It is a classical strike away to think that if returns are high it means that the companies are better run. Returns are high either because prices...If you want to becharm a full essay, order it on our website: OrderEssay.net

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