Efficient Market Hypothesis

Question 1

assumptions

Answer 1

Large number of investors
New information arrives randomly
Prices adjust quickly
Prices reflect all available information

Question 2

Information Sources

Answer 2

Price / Volume
Fundamental (quarterly reports)
Exogenous (outside world info that affects company)
Insiders (people inside the organization)

Question 3

Weak EMH

Answer 3

Future prices cannot be predicted by analyzing historical prices

Question 4

Semi Strong

Answer 4

Future prices cannot be predicted by fundamental information

Question 5

Strong

Answer 5

Future prices cannot be predicted with insider information