Part 1 (15%) Explain the three forms of market efficiency put forward by Fama (1970). Part 2 (85%) Critically discuss the evidence for and against the theory that stock market share prices fully and fairly reflect all known information. Give your own reasoned evaluation of the balance of this evidence and your views on whether it is possible to exploit market inefficiencies to consistently make abnormal returns by trading in shares using publicly available information. Go on to explain the implications for investors and companies if it were concluded that the evidence supporting the efficient stock market hypothesis was very persuasive as far as past price and publicly available information is concerned. (Total of 30 Marks) Assessment criteria To obtain a good mark your assignment will need to set your discussion in a theoretical context and to demonstrate: Content 80% ??ÿa wide range of reading and research ??ÿan understanding of differing views and opinions ??ÿlogical and relevant argument Presentation and referencing 20% ??ÿappropriate presentation and clarity of writing ??ÿcorrect referencing For part 1 you will need to demonstrate knowledge of the forms of market efficiency and understanding by explaining them in your own words. Of the 15 marks 12 will be awarded for content and 3 for presentation. No more than half the 12 marks (6) will be awarded for knowledge i.e. simply stating definitions of the three forms. Understanding must be demonstrated by further explanation in your own words to access the full range of marks. (Content 12, presentation 3- subsumed within total presentation mark. For Part 2 you need to research evidence for and against the different forms of the EMH. Correct referencing will be important. You should analyse and evaluate the evidence you cite drawing conclusions in your own words whether or not, or to what extent, it supports each form of the EMH. Of the 85 marks, 17 will be specifically for extent, relevance and correct referencing of evidence cited. The remaining marks will be for analysis and evaluation. Evaluation involves weighing a balance of arguments and drawing conclusions. This will be required to gain high marks. Citing evidence and simply asserting conclusions without critical evaluation will not gain top marks. Similarly high marks will not be gained by stating a list of implications without explaining them in your own words. When referring to material from books and articles, or when quoting directly, clear references must be made. Copying sentences and paragraphs from books, articles or any other source without identifying that source is plagiarism and subject to the sanctions set out in the universitys policy on plagiarism. The text in your report other than that from clearly referenced sources must be your own self -generated words. Do you want your assignment written by the best essay experts? Then look no further. Our team of experienced writers are on standby to deliver to you a quality written paper as per your specified instructions. Order Now, and enjoy an amazing discount!!
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