discuss about EMH?

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andy h

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discuss what the efficient hypothesis (EMH) has to say and the forms of efficiency that may have been violated in a case when stocks suddenly jumps in price, all in a day and then again after two weeks on announcement of a special dividend.


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An investment theory that states that it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. According to the EMH, this means that stocks always trade at their fair value on stock exchanges, making it impossible for investors to either purchase undervalued stocks or sell stocks for inflated prices. As such, it should be impossible to outperform the overall market through expert stock selection or market timing, and that the only way an investor can possibly obtain higher returns is by purchasing riskier investments.

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