Introduction to Investment Assignment 2

Assignment 2

Part 1

Question 1:

At a cocktail party, your co-worker tells you that he has beaten the market for each of the last three years. Suppose you believe him. Does this shake your belief in efficient markets?

Question 2:

“Highly variable stock prices suggest that the market does not know how to price stocks.” Respond.

Part 2

Question 1:

Question 2:

Question 3:

Part 3

Question 1:

Question 2:

Question 3: