COMM 308 Chapter Notes - Fall 2017 Chapter 10 - Fundamental analysis, Technical analysis, Random walk hypothesis
21 Sep 2018
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Comm 308 - introduction to corporate finance - lecture notes. 10. 1 explain what market e ciency is and why it is important. 10. 2 di erentiate among the di erent levels of e ciency. 10. 3 discuss the general consensus based on empirical evidence of market e ciency, as well as the existence of some well-known anomalies. 10. 4 di erentiate between behavioural nance and the traditional view of nance. The markets must be competitive, meaning no one investor can signi cantly a ect the price of the security though their own buying and selling. Information is costless and widely available to market participants at the same time. Information arrives randomly and therefore announcements over time are not serially connected. Investors react quickly and fully (and reasonably accurately) to the new information, which is re ected in stock prices. Continuous disclosure of all material information about the rm.
