Respond to the following comments by firstly judging whether they are right or not, and then give
Question:
Respond to the following comments by firstly judging whether they are right or not, and then give your reasons:
a. The capital markets are similar to a casino if stock prices follow a random walk;
b. If markets are efficient, you could simply select your portfolio by throwing darts at the stock listings in The Financial Review;
c. Researchers have identified that CEOs and Board of directors in the firm could earn better returns compared to normal investors. This implies that the market is weak or semi-strong efficient;
d. Assume that a company announces an unexpected large cash dividend to its shareholders. In an efficient market without information leakage, one might expect an abnormal price change at the announcement.
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young