AFM 371 Lecture Notes - Efficient-Market Hypothesis, United States Treasury Security, Yield Curve

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM 371
• Professor: Neil Brisley

Document Summary

Please choose your permanent seat in the classroom. 12. , refresh on the basic calculations and meanings of returns and their variability. Concentrate on the end bit on market efficiency, the hypotheses, their forms and implications. I also uploaded (to learn) the ppt slides from the textbook publisher. We will not use these in class, but they are an optional extra resource which may help some of you. The efficient markets hypothesis may seem a bit theoretical, but it"s an important concept that we keep coming back to. Most of the time it is convenient to assume that markets are (semi-strong) efficient (lots of our finance principles depend on it e. g. capm), because if they are inefficient then we cannot say much with certainty. 1 good reasons to believe that markets are fairly efficient, but we need to understand the implications if they are not . Next week, classes 3-4, we will be reviewing quickly concepts from bond valuation,