Discuss the efficient market hypothesis. Explain why financial
statement analysis can or cannot be performed in...
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Discuss the efficient market hypothesis. Explain why financialstatement analysis can or cannot be performed in a way thatprovides significant advantage to an investor
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And Efficient Market HypothesisThe efficient market hypothesis is an investment theory that states 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 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 the only way an investor can possibly obtain higher returns is by purchasing riskier
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