Application and Critical Evaluation of Efficient Market Hypothesis for Scancell

Application and Critical
Evaluation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Discussing about efficient market hypotheses............................................................................3
Technical analysis of company with help of CAPM method.....................................................3
Applying efficient market hypothesis for company....................................................................4
Impact of different news and other information on share price..................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The efficient market hypothesis theory is a Theory which states that share prices of the
company reflect every information relating to the business. This theory states that this stock is
being traded at the fair value on the stock exchanges. The present study is based on the company
Scancell which is a clinical stage immuno-oncology company being founded in the year 1997.
The current study will outline the discussion relating to efficient market hypothesis. Further the
project will outline the use of share prices over two years and technical analysis will be
conducted using the company data. In the end the impact over the share prices due to good or
bad news or any other declaration will be outlined.
MAIN BODY
Discussing about efficient market hypotheses
The Efficient market hypothesis is the concept which states that share prices of the
company reflects all the information relating to the business. In case the share prices are rising
then it can be stated that the company is performing well. This Efficient market hypothesis can
be divided into three different categories that is weak semi-strong and strong (Rossi and Gunardi,
2018). In case the Efficient market hypothesis of a company's strong then it means that the
performance of the company is much better. On the other hand, in case the performance of the
company is week then it can be stated that company is not effectively performing within the
market. For the business to be effective it is very necessary that they must have a strong Efficient
market hypothesis. This is necessary because the EMS is formulated with respect to the risk
adjustment and is a particular model of risk. They are the Efficient market hypothesis important
for the company in order to ensure that to whether there is a need to buy any government
intervention within the market or not. This is particularly because of the reason that stock prices
are always being created at the fair market value and it is necessary for the government to
intervene within.
Technical analysis of company with help of CAPM method
The technical analysis is being referred to as the trading discipline with a safety company
evaluating the investment and identifying the trading opportunities within the price trends
(Delcey, 2019). This technical analysis assists a person in evaluating the trend which is present