Security Analysis and

Portfolio Management

Submitted To: Mr. Viney Kumar Submitted by: Rahul Sharma

61-MBA-07
MBA 4th Sem
The Business
School

Bhaderwah
 Topic for Presentation

Efficient
Market
Hypothesis

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 Efficient Market Theory

 It states that the share price

fluctuations are random and do not
follow any regular pattern.

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 Basic concept needed to be
studied:
 Market Efficiency
1.Operational Efficiency
2.Informational Efficiency

 Liquidity Trader

 Information Trader

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 Approaches to Valuation

Fundamental Technical Efficient Market

Analysis Analysis Hypothesis

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 In1970 FAMA stated that efficient
market fully reflect the available
information. FAMA suggested the
efficient market hypothesis can be
divided into three categories:
1. Weak form of efficiency:- which
absorb only past
price. It says that current prices of
stocks fully reflects all the
information that is contained in
historical sequence of prices
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 Semi strong form: it says that current
prices of stocks not only reflect all
informational content of historical
prices but also reflect all publicly
available knowledge about the
corporation

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 Strongform: it says that all the
information is fully reflected on
security prices. It represents an
extreme hypothesis which most
observers do not expect to be true.

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 Bibliography
 Security Analysis and Portfolio
Management
Pandia Punithavathy
Page no: 283-290
 Security Analysis and Portfolio
Management V.A.Avadhani
Page no:339-356
 Security Analysis and Portfolio
Management Donald.J.Fisher
Page no:538-547 9
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