Implication of EMH Let equilibrium return for stock A is 10%. The current price P t is lower than the optimal forecast price P o t+1 so that the optim
{"Image DocumentName": "Evidence in favour of EMH", "Image ImageDescription": "Empirical studies confirm that stock pickers or mutual fund managers cannot outperform the market over a long period of time. The EMH states that stock prices reflect all available information so that earnings announcements that are already known will not affect stock prices when the announcements are made. Only \u2018new\u2019 news causes stock prices to change. Future changes in stock prices should follow a random walk (future changes in prices are unpredictable).", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}