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Efficient Markets

You must complete the activity in class materials to complete this assignment. Go to course materials, click on Unit 3 tab, click on view unit, click on the activity button, and follow the directions in the activity. After completion of the activity answer the following question:

1-How do you think the efficient market hypothesis should impact the drafting of accounting standards? Should it impact at all? (1Paragraph)
2-Why or why not? (1 Paragraph)
3-Does accounting data really have predictive power? Why or why not? (1 to 2 Paragraphs)


Solution Preview

The response addresses the queries posted in 489 words with references.

//The efficient market hypothesis is known as the conception that involves the trading of stock at fair value on the stock exchange. Before starting a paper like this, it is important to provide a brief introduction of the concept and along with this to discuss the affect of the concept on the drafting of the accounting standards, and to investigate the possible reasons behind the query.//

Answer 1

The efficient market hypothesis is the concept that takes into account that the stock is always traded at the fair value on the stock exchange by making it unmanageable for the investors to either procure the stocks that have been undervalued or to trade those stocks whose prices are highly appreciated. The ...

Solution Summary

The response addresses the queries posted in 489 words with references.