PPT-Rational Expectations and the Efficient Market Hypothesis

Role of Expectations Expectations are important in every sector and market in the economy 1 Asset demand and the determination of i 2 Risk and term structure of i 3 Asymmetric information and financial structure. Introduce precise claims distinguish the c laims from alternate or opposing claims and create an organization that establishes clear relationships among the claims counterclaims reasons and evidence b Develop claims and counterclaims fairly supplyin Expression & Functions:. . Definitions, Multiplying, Dividing. Fractions - a Quick Review. Definitions. : . Rational . Functions, Expressions. Finding the Domains . (and Exclusions) of Rational Functions. Fill-in-the-blank:. Rational. or . Irrational. ?. 1) The sum of two rational numbers is ________.. 2) The product of two rational numbers is ______.. 3) The sum of a rational and an irrational is ____.. Baseline (Flightpath D): To be able to . state that the stomach contains acid, state that the liver produces bile and write a simple hypothesis and prediction.. Further (Flightpath C&B ): To be able to . Markets. (chapter . 12 Jones). Efficient Markets. How well do markets respond to new information?. Should it be possible to decide between a profitable and unprofitable investment given current information?. The word . rational. contains the word . ratio. , which is another word for quotient. A rational number can be written as a ratio of integers.. Example 1 – . Determining Whether Numbers Are Rational or Irrational. Functions. Defn. : . Rational . F. unction. A function in the form: .  . The functions . p. and . q. are polynomials.. The domain of a rational function is the set of all real numbers except those values that make the denominator, q(x), equal to zero.. Test of hypothesis - Test whether a population parameter is less than, equal to, or greater than a specified value.. Remember an inference without a measure of reliability is little more than a guess.. Writing a Hypothesis. Quick Questions. What do we remember about testable questions?. What is a hypothesis?. What do hypotheses have in common with testable questions?. How do we write a hypothesis?. Dr Brian O’ Boyle . St Angela’s College . S. ligo. Elasticity. How would we expect a student to answer to the following question. Explain in your own words what elasticity means?. Elasticity – Application of Rational Choice. Dr Jane Robertson. Policy, Access and Use Team, EMP. 4 November 2014. Appropriate use of medicines. Relies on a number of elements. Availability. , . affordability, and use in practice of effective medicines. Rational Equations and Functions Algebra II Chapter 8 This Slideshow was developed to accompany the textbook Larson Algebra 2 By Larson , R., Boswell, L., Kanold , T. D., & Stiff, L. 2011 Holt think . we know about markets. Prof. Dr. Oliver . Spalt. spalt@uni-mannheim.de. Why are markets good?. 2. The Classical Answer . Classical economic position is that “markets are good”. They efficiently allocate risks and resources. Introduction. Random walk hypothesis . The . efficient market hypothesis (EMH) . is an idea partly developed in the 1960s by Eugene . Fama. . . It is . an investment theory that states it is impossible to "beat the market" .