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Author: Jason West
Publisher: GRIN Verlag
ISBN: 3668443157
Category : Business & Economics
Languages : en
Pages : 73
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Book Description
Bachelor Thesis from the year 2015 in the subject Economics - Finance, grade: 2:1 (68%), Northumbria University, course: Business with Financial Management, language: English, abstract: Virtual and computer games are rapidly increasing with the introduction of the smartphone and the app stores across multiple platforms and devices with an increase in games with virtual economies. This dissertation will analyse the efficient market hypothesis, along with commonly known anomalies and information announcements. It will find out whether there are market inefficiencies in virtual games in the form of anomalies, more specifically the intra-day effect. The intra-day effect anomaly is one of many critiques of the efficient market hypothesis and there have been many studies conducted into the intra-day effect. Most research on the intra-day effect anomaly is concerning real world markets and the results have contradicted one another. This study looks at the price change movements of 118 randomly quota sampled player cards within the market of FIFA Ultimate Team. Statistical analysis in the form of mean, standard deviation, and coefficients of variances tests were carried out to identify if there were any market anomalies and reactions to information announcements. A strong correlation between market inefficiencies, anomalies, and information announcements had been discovered within the research of the virtual market in FIFA Ultimate Team. The study actually found that because of an information announcement overreaction and an intra-day effect, at a specific time during a Wednesday, a player could sell their card for potentially 233% more than what they could have an hour earlier. This research study in turn supports that market anomalies do exist in games but it was also discovered that the market is semi-strong form efficient in its reaction post-information announcement.
Author: Jason West
Publisher: GRIN Verlag
ISBN: 3668443157
Category : Business & Economics
Languages : en
Pages : 73
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Book Description
Bachelor Thesis from the year 2015 in the subject Economics - Finance, grade: 2:1 (68%), Northumbria University, course: Business with Financial Management, language: English, abstract: Virtual and computer games are rapidly increasing with the introduction of the smartphone and the app stores across multiple platforms and devices with an increase in games with virtual economies. This dissertation will analyse the efficient market hypothesis, along with commonly known anomalies and information announcements. It will find out whether there are market inefficiencies in virtual games in the form of anomalies, more specifically the intra-day effect. The intra-day effect anomaly is one of many critiques of the efficient market hypothesis and there have been many studies conducted into the intra-day effect. Most research on the intra-day effect anomaly is concerning real world markets and the results have contradicted one another. This study looks at the price change movements of 118 randomly quota sampled player cards within the market of FIFA Ultimate Team. Statistical analysis in the form of mean, standard deviation, and coefficients of variances tests were carried out to identify if there were any market anomalies and reactions to information announcements. A strong correlation between market inefficiencies, anomalies, and information announcements had been discovered within the research of the virtual market in FIFA Ultimate Team. The study actually found that because of an information announcement overreaction and an intra-day effect, at a specific time during a Wednesday, a player could sell their card for potentially 233% more than what they could have an hour earlier. This research study in turn supports that market anomalies do exist in games but it was also discovered that the market is semi-strong form efficient in its reaction post-information announcement.
Author: Mario Chinas
Publisher: Library of Cyprus
ISBN: 9789925755608
Category :
Languages : en
Pages : 114
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Book Description
This is the Black & White version of the book, available at a discount, which does not include the research data and analysis tables. There is also a Full Colour version that includes all the research data and analysis tables. What is a Stock Market? How do stock markets operate? Who invests in a stock market and when is it an appropriate tool for investment? Why do we care if a stock market is efficient or not? Where can we find evidence of market efficiency? With what tools can we test market efficiency?These are some of the questions that this book approaches. The Efficient Market Hypothesis (EMH) is a theory in financial economics, developed by Eugene Fama, which states that asset prices fully reflect all available information. Thus, it is implied that stocks always trade at their fair value, making it impossible for investors to "beat the market" via technical or fundamental analysis, since market prices should only react to new information.There are three variants of the EMH: "weak," "semi-strong," and "strong" form. The weak form of the EMH claims that prices already reflect all past publicly available market information. The semi-strong form claims that prices reflect all publicly available information, thus price changes occur to reflect new publicly available information. The strong form adds to this that prices instantly reflect even hidden private "insider" information.Testing the EMH is no easy task: Quantifying the availability of information and its effect on prices and market efficiency is challenging, making research on the subject difficult, time consuming and open to criticism. However, anecdotal evidence suggests that markets at best reach semi-strong form efficiency, with weak form efficiency being the norm. However, even this is challenged by the critics of EMH, via concepts such as Behavioural Finance.This book aims to familiarise the reader with the concept of EMH, covering the fundamentals and relevant literature. We then discuss market efficiency tests for Weak Form Market Efficiency, examining in more detail the day-of-the-week effect and its significance on stock market efficiency. The day-of-the-week effect is defined as a pattern where a certain day of the week has abnormal returns continuously. It is an anomaly that violates the random walk hypothesis, and thus implies that a market is not Weak Form efficient.We put theory into practice through the Empirical Research section which is divided into two parts, looking at two different approaches to researching the day-of-the-week effect, via the examination of actual research examples on a small European stock exchange. Both of these Thesis tested the hypothesis of random walk to determine the authenticity of weak form market efficiency for a small emerging stock market within the EU (the Cyprus Stock Exchange).
Author: Stefan Palan
Publisher: GRIN Verlag
ISBN: 3638333523
Category : Business & Economics
Languages : en
Pages : 75
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Book Description
Thesis (M.A.) from the year 2004 in the subject Business economics - Investment and Finance, grade: 1 (A), University of Graz (Institute für Industrial Economics), language: English, abstract: This Master Thesis gives an overview of the research into the efficient market hypothesis from its first days in the 1950s to the present. The discussion of theoretical models and concepts is being complemented by a review of relevant empirical evidence from international capital markets. The thesis is completed by a brief outlook on newer research venues, including models employing behavioural finance approaches.
Author: Sebastian Harder
Publisher: GRIN Verlag
ISBN: 3640743768
Category : Business & Economics
Languages : en
Pages : 65
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Book Description
Research Paper (undergraduate) from the year 2008 in the subject Business economics - Investment and Finance, grade: 1.7, The FOM University of Applied Sciences, Hamburg, language: English, abstract: Especially after the 90ies, where the stock markets raised enormously, many private investors joined the stock market and were blended by abnormal profits and neglected possible losses. The same behavior could be observed before the Financial Crisis became reality. But each endless raising stock market would finally collapse, because stock prices are randomly and only driven by relevant news. The adjustment to the news is quickly. This is the theoretical argumentation of the Efficient Market Hypothesis (EMH), which will be evaluated in this paper. The author gives an overview about the EMH by explaining the basic principles and its mathematical formulation. The practical part evaluated the EMH on selected examples, where the theory could only be partly approved.
Author: Wing-Keung Wong
Publisher: Mdpi AG
ISBN: 9783036530802
Category : Business & Economics
Languages : en
Pages : 232
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Book Description
The Efficient Market Hypothesis believes that it is impossible for an investor to outperform the market because all available information is already built into stock prices. However, some anomalies could persist in stock markets while some other anomalies could appear, disappear and re-appear again without any warning. A Special Issue on "Efficiency and Anomalies in Stock Markets" will be devoted to advancements in the theoretical development of market efficiency and anomaly in the Stock Market, as well as applications in Stock Market efficiency and anomalies.
Author: Jerome L. Stein
Publisher:
ISBN:
Category : Efficient market theory
Languages : en
Pages : 62
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Author: Christos Alexakis
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Saqib Nisar
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
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Book Description
As per definition of efficient market hypothesis (EMH), there is a need that stock prices should reflect all available information in the market and no investor is able to earn excess return on the basis of some secretly held private, public or historical information. Efficient market hypothesis (EMH) can be further divided into three sub hypotheses depending upon the information set involved and these are weak form efficient market hypothesis, semi strong form efficient market hypothesis and strong form efficient market hypothesis. This study has examined the weak form of efficiency on the six major stock exchanges that are present in North-America and Europe including NYSE Composite (USA), S&P TSX Composite (Canada), FTSE 100 Index (UK), CAC 40 (France), DAX 30 (Germany) and IBEX 35 (Spain). Historical index values are gathered on a monthly, weekly and daily basis for a period of 14 Years (July 1997 to June 2011). Two statistical tests including runs test, and variance ratio test were applied for analysis and results. It is found in the process that two out of six developed stock markets of North-America and Europe doesn't follow Random-walk and hence NYSE Composite, S&P TSX Composite, DAX 30 (Germany) and IBEX 35 (Spain) are the weak form of efficient markets.
Author: Johannes Walder
Publisher: GRIN Verlag
ISBN: 3656404852
Category : Business & Economics
Languages : en
Pages : 18
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Research Paper (undergraduate) from the year 2012 in the subject Business economics - Investment and Finance, grade: 89%, University of Greenwich (Business), course: Finance, language: English, abstract: It can be assumed that the internet was one of the most influential inventions of the 20th century. The internet opened up completely new ways of communicating and executing businesses. It enabled shopping portals like Amazon or eBay to emerge and revolutionise the shopping experience of millions of customers worldwide. The new economy was a Symbol for seemingly endless possibilities and a market with no limits. However, all those new ways of doing business could not prevent one of the biggest stock market crashes in modern history caused by the dot.com bubble. This essay examines if the dot.com bubble stands in contradiction to the efficient market hypothesis (EMH) and their underlying assumptions. It will be argued that in the short term the efficient market can be bypassed but it will regulate itself again in the long run. The second part describes the strategy of a successful initial public offering (IPO) and analyses if the EMH has an impact on this endeavour. This paper will claim that the EMH influences the pricing of stocks and that a long term strategy is a key for a successful IPO.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 454
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