Is it possible to test market efficiency alone?



0
can you check my answer?

Q: Tests of market efficiency are often referred to as joint tests of two hypotheses - the hypothesis that
the market is efficient and an expected returns model. Explain. Is it ever possible to test market
efficiency alone? (i.e. without jointly testing an asset pricing model)

Ans: without the expected return model no way we can judge the market efficiency. Suppose if we don't have the model such as CAPM then whatever market offer is the right and indirectly we can assume that market can not be inefficient.

Your Answer

Click on this code-snippet-icon icon to add code snippet.

Upload Files (Maximum image file size - 1.5 MB, other file size - 10 MB, total size - not more than 50 MB)

Email
Password