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Efficient Market Hypothesis Assignment - Marks and Spencer

Added on - 23 Nov 2020

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EFFICIENT MARKETAND RETURN
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1REFERENCES................................................................................................................................4
INTRODUCTIONThe efficiency of capital market is quite necessary to be determined by the professionalsas to make adequate changes into operations. Moreover, there can be huge variation in themarket index as per the economic changes a well as the operational performance of the firmwhich are listed in it. In the present report there will be discussion based on analysing theefficient market hypothesis which ascertain the efficiency of FTSE in UK that will be helpful asto manage the business operations. Moreover, there will be determination based on financialperformance of Marks and Spencer plc over the respective period.Efficient market HypothesisIn accordance with thus theory which comprises with the action that it will always beimpossible to beet the market because of the existence of market shares will be effective andincorporated as to have relevant business information. It comprises with the method that themarket needed to be operated and the share will be traded on their fair value. Therefore, it bringsthe ability to investors in purchasing the securities as on undervalued. Similarly, they willbecome to make sale of the goods and services on their inflated prices. In addition, it becomesimpossible for investors to deal the securities in terms of purchasing it on undervalue prices aswell as sell them off on inflated costs (Efficient Markets Hypothesis,2017). Therefore, there willbe no manipulation of the share prices of entity as there will be fruitful increment in the growthand profitability of the organisation. It also states that the out performing the share is quietimpermissible only in special case as the investors wanted to take risks on purchasing the riskiermarketable securities (Hamid and et.al., 2017). Moreover, to obtain the profitable gains from themarket there will be need of having the adequate implication of various revenue and operations.Financial Times Stock Exchange (FTSE):This is the financial stock market index which contains all the information relevant withthe market prices of various shares and their market returns in the firm. Therefore, with theinfluences of such techniques it will be assistive and helpful as to manage the financialenvironment in business. It comprises with market value of all shares of all the growing andmarket giants in the capital market. It helps in s facilitating and communicating the share valueand market prices of all the firms which are listed in the indexes as to have adequate revenuegeneration (Bariviera and et.al., 2017). The importance of such information is that it will benefit1
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