Open AccessDescriptive Analysis on Products/Services demand and Market conspectus: A quantitative approach
Author(s) -
Mohammed Afaounodden Ahmed,
Adresya Suresh Azhakath,
Raja Muthalagu
Publication year - 2021
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1045/1/012005
Subject(s) - efficient market hypothesis , stock market , economics , financial economics , stock (firearms) , debt , econometrics , finance , mechanical engineering , paleontology , horse , engineering , biology
The research conducted in this paper consists of finding out the shortcomings of Efficient Market Hypothesis as it is purely based on if information is immediately priced in the Trading markets. Efficient market hypothesis(EMH) also suggests that it is not possible for someone to give more returns than the market in long term, Which has been disproven in this research using multiple criteria decision making and taking the companies with Good Debt to Market cap ratio and check their aggregated outcome over a long period of time and the rate of return came out to be significantly higher than the growth in the market. One of the main assumptions of EMH also happens to be that fundamental analysis does not affect stock market or stock indexes but its proven to be false as in long term if indexes are selected based on good criterias. Efficient market hypothesis says that stock prices depend on news and the news of the next day is by default unpredictable, but it doesn't take into account the fact that not everyone interprets the news in the same way and even if they do they don't process the information on the same intensity.