Economics Homework Help

Discussion 1 (250-word min)

Prior to beginning work, read about Market Efficiency.

“We know that the success of alternative investment strategies depends largely on market efficiency” (Jones & Jensen, 2020, p. 315). In this discussion, you will solidify your understanding of the efficient market theory and its implications on investment strategy.

Initial Post: You are talking with your work colleagues about market efficiency. In your post take the position that the U.S. stock market represents a semi-strong efficient market.

In your initial post, explain the following:

• Explain what is meant by a semistrong-form efficiency
• Explain two research studies that support semistrong efficiency and use those studies to support your argument (include studies as resources).
• Explain the implications of a semi-strong efficient market on investors.

Discussion 2 (300-word min)

In your journal, be sure to address the following:

• Summarize the efficient market hypothesis.
• Summarize the two positions of market efficiency (semistrong form and strong form).
• State which position you believe.
• Justify your position.
• Explain what your belief implies about how you should manage your own investments.