Week 7 - Efficient Market Hypothesis

Let's turn our attention to the Efficient Market Hypothesis. You may draw from personal experiences, your own research, or what you have learned from the readings. Search the Internet for information on the "Efficient Market Hypothesis." Provide a basic definition of the various forms (strong, semi-strong, and weak). Then share your perspective on the following: Over the first three quarters of 2016, the Federal Reserve chairwoman Janet Yellen made multiple announcements concerning a likely increase in interest rates in the near future. What impact did these announcements have on the stock market? When considering the Efficient Market Hypotheses, why would chairwoman Yellen find it necessary to provide this information before the actual occurrence? Provide a non-finance example of the efficient market hypothesis. (In other words, apply the concept of efficient markets to a "real world" example.") You must use outside sources to support your answer. Please reference your sources.