11.13: Video Activity
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Efficient Markets
1.
In the efficient market hypothesis (EMH), describe what is meant by the terms weak form efficiency, semi-strong form efficiency, and strong form efficiency. How do these forms of market efficiency differ from each other, and what are their characteristics?
2.
What is meant by the term random walk, and how does this concept relate to the EMH?
What Is Preferred Stock?
3.
Discuss the relative risks of the following financial instruments and how they compare to each other: bonds, common stocks, and preferred stocks. How and why will these three investment types typically carry different levels of risk to an investor?
4.
Discuss some of the important differences between preferred stocks and common stocks.