You believe you have found a trading strategy that could make significant profits. It requires looking at analyst forecasts and purchasing stock where there has been an upgrade in the recommendation and selling shares where there has been a downgrade in the recommendation. a. Describe which form the Efficient Market Hypothesis will be viola ed if you are able to make significant profits from your trading strategy in the future. b. List three factors that you may be overlooking in assessing the profitability of your trading strategy.

Select all that are true with respect to the theory of market efficiency. Group of answer choices If markets are efficient, investors cannot earn positive returns If markets are efficient, it means prices are always "right" in that the reflect perfect foresight into what will happen in the future Strong form market efficiency suggests that all information, public or private, is reflected in current prices in an unbiased way Market efficiency suggests that relevant information is quickly impounded into prices If transaction costs are high, then prices are less likely to reflect all available information

As risk aversion increases   A. a firm's beta will increase. B. investors' required rate of return will increase. C. a firm's beta will decrease. D. investors' required rate of return will decrease.

An asset manager and he is overweight in equities because he believes that equities have more upside in the long run. However, he is worried that any negative news regarding COVID-19 may cause a short-term sell off in the stock markets. The asset manager thinks that any sell-off will be limited in size and duration. He is also concerned that implied volatility is very high, so he would like to minimize his vega exposure. Outline 2 different strategies that the asset manager could follow and explain the advantages and disadvantages of each strategy.

1. Which form of market efficiency is the best among weak, semi strong and strong? 2. Is stock market efficient? Give logic in favour of your answer

please help me check my work and anything unsolved, thanks

TRUE OR FALSE 1. Market psychology describes the common practices and overall emotion of market participants at any given period 2. Market behavior and emotions impact the overall market performance. 3. A disciplined trader does not expect a stock to breakout. 4. In order to control emotions when trading, one should do research before making a decision. 5. A strong conviction will eventually lead to higher probability of success in trading.

Which of the following is true regarding the smart investor? Multiple Choice A. They require a risk premium for the risk taken B. They trade in the mornings when the market is least volatile C. They avoid risky investments D. They like investments with betas < 1

Step by step explaination (use attached diagram)   This question relates to Diagram 6 from the diagrams, which shows the probability distributions of returns for Shares N, P and Q. In which share would a risk-averse investor be most likely to invest? Select one: a. Share N b. Share P c. Share Q d. We need more information about the investor's risk tolerance to determine which share the investor would prefer.

b) "If a stock had high returns so far, it will have low returns in the future". Discuss whether this statement is true or false, based on the knowledge of the different theories and models out there.