The economics of money, banking, and financial markets

Global  Should Foreign Exchange Rates Follow a Random Walk?  153

APPLICATION

  Practical Guide to Investing in the Stock Market .............................153

How Valuable Are Published Reports by Investment Advisers? ........................................... 153

Should You Be Skeptical of Hot Tips? ................................................................................. 154

FYI  Should You Hire an Ape as Your Investment Adviser?  155

Do Stock Prices Always Rise When There Is Good News? ................................................... 155

Efficient Market Prescription for the Investor ...................................................................... 155

Why the Efficient Market Hypothesis Does Not Imply That  

Financial Markets Are Efficient........................................................................................156

APPLICATION

  What Do Stock Market Crashes Tell Us About the Efficient  

Market Hypothesis and the Efficiency of Financial Markets? ..........................157

Behavioral Finance .....................................................................................................................157

Summary 158  •  Key Terms 159  •  Questions 159  •  Applied Problems 160  •  

Data Analysis Problems  161   •   Web Exercises  160   •   Web References  161

CHAPTER 7 APPENDIX

Evidence on the Efficient Market Hypothesis

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