1) Identify one empirical example that tends to support the EMH. Explain why it supports the EMH (5pts) 2) Identify one empirical example that tends to refute the EMH. Explain why it refutes the EMH(5pts)
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One empirical example that tends to support the Efficient Market Hypothesis (EMH) is the random walk theory. This theory suggests that stock prices follow a random pattern and are not influenced by past prices or any other information. If this theory holds true, Show more…
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