Home / Questions / The strong form of the efficient market hypothesis is nonsense Look at mutual fund X it ha...
The strong-form of the efficient-market hypothesis is nonsense. Look at mutual fund X; it has had superior performance for each of the last 10 years.” Does the speaker have a point? Suppose that there is a 50% probability that X will obtain superior performance in any year simply by chance.
a. If X is the only fund, calculate the probability that it will have achieved superior performance for each of the past 10 years.
b. Now recognize that there are over 10,000 mutual funds in the United States. What is the probability that by chance there is at least 1 out of 10,000 funds that obtained 10 successive years of superior performance?
|
Month |
(A) Market Return |
(B) Executive Cheese Return |
(C) Paddington Beer Return |
|
May 07 |
2.7 |
-3 |
1.6 |
|
Jun |
-0.2 |
2.3 |
-0.8 |
|
Jul |
-3.8 |
-5.1 |
0.3 |
|
Aug |
-0.9 |
-0.7 |
-1.6 |
|
Sep |
2.6 |
3.1 |
2.8 |
|
Oct |
3.9 |
13 |
2.1 |
|
Nov |
-4.3 |
-2.1 |
6 |
|
Dec |
0.4 |
6.2 |
-1.7 |
|
Jan 08 |
-8.9 |
-4 |
-5 |
|
Feb |
0.1 |
0.4 |
-0.4 |
|
Mar |
-3.1 |
-2.1 |
-2 |
|
Apr |
6.8 |
4.6 |
3.2 |
|
May |
-0.6 |
-0.3 |
0.4 |
|
Jun |
-7.1 |
-12.7 |
-7.3 |
|
Jul |
-3.8 |
1.1 |
-4.1 |
|
Aug |
4.2 |
7.2 |
2.3 |
|
Sep |
-13.0 |
-18.1 |
-8.7 |
|
Oct |
-10.7 |
-6.2 |
-12 |
|
Nov |
-2.0 |
0.5 |
-4.2 |
|
Dec |
3.4 |
4.7 |
2.7 |
|
Jan 09 |
-6.4 |
-8.1 |
-0.4 |
|
Feb |
-7.7 |
-2.1 |
-9.4 |
May 13 2020 View more View Less
Human sex chromosomes are XX for females and XY for males.a. With respect to an X-linked gene, how many different types of gametes can a male produce?b. If a female is ...
Jun 26 2021Your company hires a new marketing manager. This position is typically paid $45,000/year; however, the new hire is offered and accepts $60,000/year based on his expertise...
May 29 2020Draw 1 valid Lewis structure for each of the following molecular formulae: a) HClO4b) H2CO2c) HNO2d) SOCl2
May 19 2021The following chemical reaction takes place in an aqueous solution:Write the net ionic equation for this reaction.
May 17 2021Define and describe the main features of the following developmental stages: fertilization, cleavage, gastrulation.
Jun 25 2021The carrying capacity of a population is determined by its a) population growth rateb) natality c) mortality d) limiting resources
Jul 12 2021The time needed for college students to complete a certain maze follows a normal distribution with a mean of 45 seconds.To see if the mean time(in seconds) is changed by ...
Apr 13 2020In the game of economics, goods are objects that fulfill peoples needs and ____
Jun 11 20211. Jolie Company has shipped $500 of goods to China Co., and China Co. has arranged to sell the goods for Jolie. Identify the consignor and the consignee. Which company s...
Jul 20 2020When you go to a movie theater, you buy a pre-numbered ticket from the cashier. This ticket is handed to another person at the entrance to the movie. What kinds of irregu...
May 02 2020