Question: Despite many years of research the evidence on market efficiency
Despite many years of research, the evidence on market efficiency described in this chapter appears to be inconclusive. Some argue that this is because researchers have been unable to link company fundamentals to stock prices precisely. Comment.
Answer to relevant QuestionsGeoffrey Henley, a professor of finance, states: “The capital market is efficient. I don’t know why anyone would bother devoting their time to following individual stocks and doing fundamental analysis. The best approach ...There are two major types of financial analysts: buy-side and sell-side. Buy-side analysts work for investment firms and make stock recommendations that are available only to the management of funds within that firm. ...Why would a company pay to have its public debt rated by a major rating agency (such as Moody’s or Standard and Poor’s)? Why might a firm decide not to have its debt rated?Since the year 2000, there has been a noticeable increase in mergers and acquisitions among firms in different countries (termed cross-border acquisitions). What factors could explain this increase? What special issues can ...As an external adviser to the U.S. government’s interagency committee that vets foreign takeovers, you have been asked to provide expert testimony on the proposed takeover of a major US airport by a Dutch airport ...
Post your question