84 Video Activity
Efficient Markets
If you have difficulty viewing the video above, use this link https://youtu.be/L6zk0E6YApw
After viewing the video, answer the following questions:
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?
If you have difficulty viewing the video above, use this link https://www.youtube.com/watch?v=MEMMVBJuJ7s
After watching the video, answer the following questions:
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.
Attribution:
This chapter is from “Principles of Finance” https://openstax.org/books/principles-finance/pages/1-why-it-matters by Dahlquist and Knight. This book is licensed under the CC-BY 4.0 license. 2022 OpenStax.
