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The Efficient Market Hypothesis (EMH) asserts that securities prices fully reflect all available information at any given time. As a result, it suggests that it's impossible to consistently achieve higher returns than the overall market through stock selection or market timing, since any new information is quickly incorporated into prices. EMH is categorized into three forms: weak, semi-strong, and strong, each varying in the types of information considered. Ultimately, EMH implies that markets are efficient and that investors cannot easily outperform the market through analysis or trading strategies.

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1d ago

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Can you accept and reject the null Hypothesis Why or why not?

Some people say you can either accept the null hypothesis or reject it. However, there are statisticians that insist you can either reject it or fail to reject it, but you can't accept it because then you're saying it's true. If you fail to reject it, you're only claiming that the data wasn't strong enough to convince you to choose the alternative hypothesis over the null hypothesis.


Why economists say competitive markets are efficient?

Economists say that competitive markets are efficient because when there is competition prices are lower. The more available an item, the less it will cost the consumer.


Inflation is defined as?

Inflation is when..... say a sweet cost 50p one year and the next 1 pound then you have to go borrow the extra 50p to buy the sweet


Why do economists say you should distinguish between the relative and observable price?

Economists emphasize distinguishing between relative and observable prices because relative prices reflect the value of goods in comparison to one another, influencing consumer choices and resource allocation. Observable prices, on the other hand, are the actual market prices at which goods are sold. Understanding relative prices helps in assessing the opportunity cost of decisions, while observable prices provide concrete data for market analysis. This distinction is crucial for effective economic decision-making and policy formulation.


Characteristics of perfect competitive market?

A perfectly competitive market has many competitors. There is no one competitor that has more say in product prices within the industry.

Related Questions

What is a verbal hypothesis?

ANSWER: A verbal hypothesis is when you say a hypothesis orallly.


What you do to a hypothesis docent NT work?

say that your hypothesis is incorrect in your conclusion


What is meaning by saying that a hypothesis must be testable?

In Karl Popper's terminology there must be a way to prove a hypothesis false. That is what it means when scientists say that a specific hypothesis is a "testable hypothesis".


What is another way to say educated guess?

hypothesis


Difference between acceptance and rejection region?

Some researchers say that a hypothesis test can have one of two outcomes: you accept the null hypothesis or you reject the null hypothesis. Many statisticians, however, take issue with the notion of "accepting the null hypothesis." Instead, they say: you reject the null hypothesis or you fail to reject the null hypothesis. Why the distinction between "acceptance" and "failure to reject?" Acceptance implies that the null hypothesis is true. Failure to reject implies that the data are not sufficiently persuasive for us to prefer the alternative hypothesis over the null hypothesis.


Hypothesis about online shopping?

dont say nonsense to dumb shoppers


Is it correct grammar to say government controls on securities has been abolished?

government controls HAVE been abolished


What is making a hypothesis?

Making a hypothesis is turning your question into an answer Example: you say "How is a rainbow made" you answer the best of your ability) "A rainbow is made by the sun reflecting on the water"


What is make hypothesis?

Making a hypothesis is turning your question into an answer Example: you say "How is a rainbow made" you answer the best of your ability) "A rainbow is made by the sun reflecting on the water"


What are two things that presidents always say that they will improve if they get elected?

they will say that they will improve gas prices,college prices,and safety things


Why do we say natural science has limitation?

If a hypothesis can't be tested then it's not "scientific".


What does it mean to say that if a hypothesis is scientific then there must be a means to prove it wrong?

Your grammar.......