Assume you want to test the EMH by comparing alternative trading rules to a buy and hold policy. Discuss the three common mistakes that can bias the results against the EMH.
Answer to relevant QuestionsDescribe the results of a study that supported the semistrong-form EMH. Discuss the nature of the test and specifically why the results support the hypothesis.Describe the results of a study that did not support the strong-form EMH. Discuss the test involved and specifically why the results reported did not support the hypothesis.How should a portfolio manager without any superior analysts run his or her portfolio?Why do most investors hold diversified portfolios?Assume that you and a business associate develop an efficient frontier for a set of investments. Why might the two of you select different portfolios on the frontier?
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