WhatsApp us

Investment Consequences

Need a hand with your homework? Get expert help now and smash those grades! 💯 Submit your assignment today!

100% human expertise, no AI. 🤖

  • Experienced Tutors
  • On-Time Delivery
  • Plagiarism-Free Work
myhomeworkhelp reviews
Order Homework Help From Experts
Please enable JavaScript in your browser to complete this form.
Please enter the details of your homework requirements.
What should we call you?
Zero spam guarantee.
For order updates only.

Hire Best Homework Helpers

MyHomeworkHelp is proud to work with a team of expert professionals with verified academic credentials, selected for their proven skills in their field of study.

Confidently hire experts from the top universities across the globe.

Benefits & Assurances

subjects covered

All Subjects Covered

subjects covered

Refund Guarantee

subjects covered

Experienced Tutors

subjects covered

Unlimited Revisions

subjects covered

On Time Delivery

subjects covered

Chat With Expert

If you are an investor, does EMH matter to you? There is no availability of signals in an efficient market if you expect to outperform the expected rate of return on day-to-day basis. So, the possibilities to exploit arbitrage opportunities get limited. So, the main question is which among the both a good signal is; the past return or the future one?

11.5 A Weak-Form Efficiency and Technical Analysis

As, we know there are three strengths of market efficiency. The key feature which defines the weak version of a traditionally classified efficient market is- it is impossible to become rich just by relying on historical prices for trading strategies.

Investment Consequences 7

Graphs a and b shows the regular strong cyclic patter. If it had shown the future patterns, one will easily become a rich technical analyst. This stock shows a monthly pattern where their price may fall by $2. This will allow you to get rich. But is this possible in real time?

Yes it is possible. For example like, among 10,000 stocks purchased one or two may behave in such a cyclic pattern. But these are very hard to notice. So, these patterns may never represent the futuristic stock characteristics but are just only historical references of stock price movement.

Now, apart from graph a and b; c and d can represent. May be, the price may be higher than the previous. But the expected rate of return remains positive. But, the non-negligible con of the graphs c and d is, it contains lot of noise. This increases the chances of unpredictability and one can easily miss out the opportunities or outsmart the market strategies.

The Empirical Evidence


Now, it is the main motive of the traders to be wealthy and for that they try out every sort of strategies. They rely on technical analysis and use the graphs to find coincidences with historical stock prices. But does that help?

There is a belief that stocks that are rising one day have most tendencies to fall the coming day or next day.

Investment Consequences 8

These graphs represent market status for S&P 500 and IBM. They show the expected rate of return for tomorrow date as a function of today’s expected rate of return. The year ranges from 1985 to 2003.

This graph does not help in predicting tomorrow’s performance of the stocks solely depending on today’s values. So, it cannot make you rich as a trader.

Bid-ask bounce: It is data illusion concept which stated that, if the closing price of a stock is higher than the asked price; chances are that it falls back the coming day. While if its closing price is lower than the bid price- on average basis it will gain the next day.

Now, if the firm has momentum effect, that is- if it has been performing well in the past and according to last one month log, it will continue to perform better. Then there is a tendency of the stocks to repeat or continue their patterns. But to a small extent.


Three questions pop up in our minds when we detect a low signal-to-noise ratio but the strategies of trading have high earning. It is difficult to determine why it happened:

  • Was it random luck? What if it was just a lucky earning and it will never repeat again?
  • Have you performed any flaw in measuring the performance? Maybe you unknowingly took some risk.
  • Or maybe, you are proficient every stock skills like detecting good signal, trading ability, good measuring techniques. But the market was inefficient!

These are the topics of arguments in academic fields. But, the real situations remain unsolved; where you cannot distinguish between: A good or bad signal-to-noise ratio, if it was just luck or your skills. Explicit ideologies in these matters help you in picking up a fund manager when it comes to investing.

Features to consider in an investing manager, if you want him to make you money from an inefficient market.

  • Evidence: Some investors try to stay off the radar. They perform their selection privately and secretly. Neither they want to teach their skills to anyone nor do they want to come out to help publicly. So, it becomes difficult to find such talented investors and it becomes impossible to even test their abilities.
  • Adequate data: A great deal of practice for decades can improve your performance and then only one can conclude on your realistic techniques which work when it comes to investing.

Measuring the recent three years of performance of an industry in the stock market, can help in accurate evaluation of funds.Though it is evident that the three years information is completely filled with noise. So, it proves that most investors shift their fund holdings based on these noise.

Either they do not understand the way these strategically techniques work
or they have been just doing it casually without minding too much about reality.

  • Efficient employees:

Among all the investors available; how many do you think can outperform the market the coming year? Suppose there are 10,000 mutual funds. Considered if none of them has explicit capabilities of investing; 5000 among this batch will out-smart the market the next year. And half of that, like near about 2,500 the coming next year. So, it stands out that without any skills in investing, among the batch of random employees 10 will keep on outperforming the market for decades. So, with adequate candidates it becomes easier to taste profits.

  • Sustaining the market:

Funds which has been underperforming in the market for several years in a row will eventually disappear from the market. While, those who have been outperforming for consecutive years they start boasting about their talents, advertising their success and hence collect more investments. They appear as professionals and they and their managers are supported by their own research teams. But, do they really have the talent?

Now, when you have a look of all the mutual funds offered on a single day- you do not get to notice the ill funds as they have already disappeared. Large sums of funds with better performance will grab your eye. So, you conclude that; these available funds are enough to make you money from the market though its possibility maybe way low in the real market.

This phenomenon is known as Survivorship bias.

 In the hierarchy of business the fund managers charge high fees to take all the advantages. This is because this manager has the scarce skill but not the investor. The investors take the money to the fund manager to pick up stocks for higher returns.

In short; past performance plays a significant role in predicting the manager’s future performance. But it is advisable to not dwell in the recent past, as it will prove to be a poor judge.

The Empirical Evidence      
The luck of a fund manager is far more crucial than his ability to pick investments. When there is a search for better performing analysts or proficient managers they found little chances of future performances. This proves that, when some fund manager has the capability of better earning through systematic concepts and corrects picking; there is high possibility that the very manager will perform well in the future too. Study says that about 54% of all the mutual funds who has a history of outperforming in the recent one to three years will keep on outperforming the market for the coming years.

Now this percentage is more than 50% but not by much. After deducting the additional fees like fund fees, the performance rate drops drastically below 50%. Thus this evidence shows that past performance is not a good predictor of future performances.

Even considering all examples of great investors, professors come to believe that if an investor earns a high amount of money even if it is over the few years; luck plays a significant role in that more than ability.

11.6 Corporate Consequences

A perfect market is the initiation of an efficient market. But there are three different possibilities:

  • A market is both perfect and efficient.
  • The market maybe efficient but not perfect.
  • A market is imperfect and inefficient.


The one and only thing that matters in a firm is; the present values on the underlying projects. Other than that- earnings of investors, number of shares, dividend payments, capital nothing were that crucial.

Earnings reporting: If you combine your foreign earning with your main earning, the net increase in your earning for the firm will indeed grow high. These change should not affect that is must not add or subtract the value of the firm.

Capital Structure: Suppose, your firm is involved in equity of $100 value. And there is a 50-50 debt to equity ratio. So its final worth is $102. Now, if a company wants to buy your firm and issue $51 for both debt and equity. Thus the capital worth of the firm to be $100 turns out to be absurd.

Stock splits: Old shares become new ones and each becomes multiple.

Dividends: In the scenario where the market is perfect; $100 worth firm pays $10 dividend but it’s worth should be $90.


Efficient versus inefficient: You can easily learn from the prices from an efficient market. If the you have an inefficient market; you can easily recognize the under-priced firms and take over them. And you can set prices which can manipulate the information of your firm.

Perfect versus imperfect: In perfect market you can ignore every price like reported earning and much more to focus on the net values of present projects. While in case of imperfect market; you can reduce the imperfections by creating your own value.

Event study: It is the study of how the price sets affect the set of events.

11.7 C Capital-Structure-Related and Other Event Study Results

Event study helps us in understanding the situation of the events and if the taken decisions are the appropriate one.

Limitations for Event study:

  • You need many and various occurrences of big events.
  • It is important to keep taps on upcoming news.

There may be many simultaneous occurring events.


Links of Previous Main Topic:-

Links of Next Financial Accounting Topics:-

Your Price: $15.00 $13.99 🔥

Pricing may change based on requirements

Get Homework Help In

Maths and Statistics


Humanities & Arts


Essay Writing

How Our Homework Service Works

FAQ number 1

Share your requirements

FAQ number 2

Make secure payment

FAQ number 3

Get homework answers

FAQ - Our Homework Help Services

We have put together some commonly asked questions.


Is there a website that can do my homework?

Yes, if you are looking for such a site, MyHomeworkHelp is one of the leading homework help websites that can do your homework and assist with various academic needs. Here's all you need to know about our team and how they provide flawless homework help.

If you find yourself thinking, "I need to pay someone to do my homework," our team is ready to assist. It's common for students to seek help with their homework, and our experts are prepared to provide personalized support tailored to your needs.

You can visit www.myhomeworkhelp.com to get all types of homework-related help from our experts.


What is the best homework help website?

The best homework help website enhances students' experience of getting homework assistance from experts. MyHomeworkHelp, recognized as one of the best online homework help platforms, serves as both a guide and a solution provider for students. We've been rocking the homework help scene since 2012, assisting over 20k students, and we must be doing something right because more than 70% of them keep coming back for more. Whether you need help understanding concepts, completing assignments, or getting your homework done, MyHomeworkHelp is here to support your academic journey as the best college homework website.


How can I get help with my homework?

1. Tell us your homework details

To get started with online homework help, simply choose the type of homework assistance you need. When filling out the order form, make sure to provide detailed instructions, including the deadline, number of pages, grading rubric, and any other relevant information.

2. Confirm your order

Review the details of your homework order and proceed to make a secure payment using VISA, Mastercard, or PayPal. Once the payment is processed, our experts will begin working on your homework immediately.

3. Receive your order

The completed homework will be delivered directly to your email. This ensures that students receive their homework assistance on time and can meet their academic requirements without stress.


Do you guarantee plagiarism-free homework answers?

We take academic integrity very seriously and understand the importance of providing homework answers free of plagiarism. Our tutors are committed to delivering original and unique content for every assignment. Here are the steps we take to ensure your homework is plagiarism-free:

  1. Original Work: Each assignment is completed from scratch based on your specific requirements and guidelines.
  2. Expert Tutors: Our tutors are highly qualified and experienced in their respective fields, ensuring the work they produce is both original and high-quality.
  3. Plagiarism Detection: We use advanced plagiarism detection software to scan every assignment before delivery. This ensures that the content is unique and free of any copied material.
  4. No AI Usage: We guarantee that all work is 100% human-crafted expertise, with no AI-generated content involved. This ensures the authenticity and quality of the work provided.
  5. Quality Assurance: Our quality assurance team reviews each assignment for originality and adherence to academic standards before it is sent to you.

By following these stringent measures, we guarantee that the homework answers you receive are completely free of plagiarism and AI involvement. You can trust us to provide you with original and high-quality academic assistance.

For more information on our guarantees, please visit our guarantees page.


Is your homework service confidential?

Absolutely! Confidentiality is one of the basic guarantees of our service at MyHomeworkHelp.com.

When our customers make their homework orders, they know their information remains 100% confidential.

Even your homework writer will not be provided with your personal details. So, when you hire a professional homework helper on our website, rest assured that your information will remain private and safe.

For a comprehensive understanding of how we protect your privacy, please refer to our Privacy Policy.


How much do I need to pay to get my homework done?

We do not have monthly fees or minimum payments for our services. Each homework assignment is quoted a unique price, based on the tutor’s estimate of the time required to complete your work. There are no obligations, and you are free to discuss the price quote with the tutor.

When you decide to pay someone to do my homework, our pricing starts at $13.99 per page. The final pricing depends on various factors including the page count, deadline, nature of the task, and the homework writer’s level of expertise.

We offer flexible payment options, allowing you to make a partial payment to start working on your assignment and pay the remaining amount upon completion. This ensures no pressure of up-front payment and no hidden order costs.

Our dynamic pricing model takes into account the type of assignment, its urgency, and the complexity of the task. For instance, shorter deadlines and more complex assignments may increase the price. You can get an instant quote by selecting your assignment type, deadline, and page count on our website.

Get the help with your homework at competitive rates, tailored to your specific needs and deadlines. For more detailed information on pricing, please visit our pricing page.


Who are the experts who will help me with my homework?

We work with subject experts from all over the world. We hire them with the help of complex tests in the disciplines of their expertise. We also verify the IDs and academic transcripts of our homework writers to be sure that our experts have a bachelor's or master’s or a PhD degree. This is how we can be sure of the proficiency of our panel of experts who will help you with your homework. Here's all you need to know about our team and how they provide flawless homework help.

  1. Our team comprises top-tier homework helpers who excel in addressing and resolving questions on various topics. Each tutor effectively utilizes their expertise to concentrate on the core subject matter and thoroughly analyze it.
  2. Our professional tutors specifically craft each assignment tailored to students' requirements, including preferred formats, citation styles, and essential elements.
  3. Whether it’s coursework, dissertations, essays, or case studies, our platform guarantees timely college homework help across a wide range of academic papers. Don’t hesitate any longer; connect with our tutors when you seek help with your homework for perfect assignment solutions and improved grades.


Can I chat with my homework helper for updates?

Yes, you can certainly chat with your homework helper on our secure chatboard platform. MyHomeworkHelp.com provides a direct communication channel between you and your assigned expert (while maintaining privacy). This feature allows you to ask questions, clarify instructions, and provide additional information about your homework order to ensure that the help you receive is tailored to your specific needs.

You'll be notified by email whenever there are new messages for you, but we advise regularly checking your personal page to ensure no critical updates from your writer are overlooked.

Should you have an urgent matter to address, do not hesitate to contact the support team for assistance. This system ensures that students can stay updated on their homework paper progress and maintain clear communication with their experts.


What makes you the best homework helper?

MyHomeworkHelp is ranked as one of the best online homework helpers, providing exceptional support to students. We've been excelling in the homework assistance arena since 2012, assisting over 200k students, and consistently achieving high satisfaction rates, with more than 70% of our students returning for additional help. But do not take our word for it! See our independent reviews on google, facebook, sitejabber, and on Trustpilot. For all collated reviews, see here

We ensure our prices remain competitive and offer attractive discounts to make our services accessible. Our commitment to delivering plagiarism-free solutions guarantees the integrity and originality of your assignments. These attributes, combined with our dedication to personalized support and timely delivery, establish MyHomeworkHelp as the premier homework helper for all your academic needs.


How will I receive my homework order?

You'll receive the initial version of your paper as a secure, non-editable PDF within your specified deadline. This allows you to review the content and decide if any revisions or edits are required. Our homework service will refine the homework paper based on your feedback.

Should the document meet your expectations and not require any changes, you can simply approve the order and access the editable Word .doc file.