Why doesn't the rational efficient markets paradigm provide a satisfactory explanation for many foreign exchange market anomalies?© BrainMass Inc. brainmass.com October 17, 2018, 3:48 am ad1c9bdddf
Chakrabarti & Sen (2011) provides that financial market anomalies provide grounds to question the efficiency of financial markets. The foreign exchange market is an active financial market as large activities in trade and therefore the market is viewed as liquid and efficient. According to Chakrabarti & Sen (2011), efficiency is important in the foreign exchange market since prices of assets, goods and factors of production are affected by changes in exchange rates.
The efficient markets hypothesis explains foreign market anomalies by maintaining that market prices fully reflect available information. The hypothesis was initially accepted to explain anomalies in the market since prices were seen to be in accordance with random walk model and variations in equity returns. Russel & Torbey (2002) provide that efficient market hypothesis does not adequately depict trading operations in the economy thus does not fully explain
Why efficient markets paradigm does not provide a satisfactory explanation for many foreign exchange market anomalies
Russel & Torbey (2002) provide different anomalies that the efficient market hypothesis does not fully explain and ...
Why the rational efficient markets paradigm provide a satisfactory explanation for many foreign exchange market anomalies is determined.
Saudi Arabia Stock Exchange (Tadawul).
History of the Saudi stock market.
How many days of trading for example the U.S 5 days trading week.
Does Ramadan affect the Saudi markets?
Does pilgrimage affects the Saudi market?
General information about the Saudi Arabia market.View Full Posting Details