The basic efficient market hypothesis theorizes that the market cannot be beaten because it incorporates all important determining information into current share prices Therefore, stocks trade at the fairest value, meaning that they can't be purchased undervalued or sold overvalued i Explain THREE (3) reasons that the Efficient Market Hypothesis may be incorrect ii Discuss the THREE (3) forms of Efficient Market Hypothesis, including the implications as it applies to technical traders and fundamental analyst

Question: The basic efficient market hypothesis theorizes that the market cannot be beaten because it incorporates all important determining information into current share prices. Therefore, stocks

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i Three Reasons the Efficient Market Hypothesis EMH May Be Incorrect 1 Behavioral Biases EMH assumes that all investors act rationally and have access ... View full answer

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