An examination of the efficacy of Behavioral Finance Essay

An examination of the efficacy of Behavioral Finance - Essay Example 383) -The weak form hypothesis asserts that stock prices already reflect all information that can be derived by examining market trading data such as the history of past prices, trading volume, or short interest. Numerous papers have demonstrated that early identification of new information can provide substantial profits. Insiders who trade on the basis of privileged information can therefore make excess returns, violating the strong form of the efficient market hypothesis. Even the earliest studies by Cowles (1933,1944), however, make it clear that investment professionals do not beat the market. It has already been stated that an efficient market is one where the prices of securities fully reflect all available information, but then what are the sufficient conditions for capital market efficiency? In an idealized world, such conditions would be The debate about market efficiency has resulted in thousands of empirical studies and literature attempting to determine whether particular markets are in fact ‘efficient’, and if so to what degree. In fact, the majority of studies and researches of technical theories have gone to the result that it is difficult to predict prices. Moreover, the random walk theory indicates that price movements will not follow any trends and so by knowing the past price movements it’s not possible to predict the future price movements. All these state that markets are in fact efficient. However, researchers have also exposed many stock market anomalies that seem to be inconsistent with the efficient market hypothesis. Trading strategies seem to be widespread among fund managers and there is little evidence that they would generate excess returns in practice (Malkiel, 2003). Evidence proof that the use of trading strategies might be closely related to behavioural anomalies. It is impossible to consistently make abnormal returns using a

Qatars Government as an Organization Essay Example | Topics and Well Written Essays - 4000 words

Qatars Government as an Organization - Essay Example Qatar adopted a new constitution in 2005, which provides limited but significant freedom of democracy to the nation’s citizens. Its government structure comprises of ministries, national councils and other relevant government agencies. According to Khurana (2013), Emir of the state is the head of cabinet and stands as the commander-in-chief of the armed forces. In Qatar, Emir is entitled with the mandate to appoint ministers and other senior officials within government institutions. Within the nation’s governance structure is a prime minister, whose duty includes supervision and coordination of efforts from the different branches of government. According to Luthans (2013), ministers are charged with the responsibility of planning and executing public policies and national programs. In the recent past, Qatar staged a government restructuring exercise on its ministries and supreme councils. Typical development within the restructuring process included modernization of gov ernance through integration of technological systems, and formulation of clear, non ambiguous mandates for each ministry. This process aimed at facilitating realization of outcome-based governance and informed decision making processes. Senior management within the nation realized the need to adopt structures that will fast-track institutional reforms and national development. This was in line with the country’s national vision for the year 2030, which strives towards improved social, economic and political development. Ornstein (2011) assert that specific provisional objectives of the vision include enhanced capacity and transparency within the public sector, and development of appropriate... The country is currently headed by Sheik bin Khalifa with a title of The Emir, which simply means a ruler or a king. According to Khurana (2013), Qatar is an oil rich country with about 70% of the gross national income attributed to the oil business. Qatar adopted a new constitution in 2005, which provides limited but significant freedom of democracy to the nation’s citizens. Its government structure comprises of ministries, national councils and other relevant government agencies. According to Khurana (2013), Emir of the state is the head of cabinet and stands as the commander-in-chief of the armed forces. In Qatar, Emir is entitled with the mandate to appoint ministers and other senior officials within government institutions. Within the nation’s governance structure is a prime minister, whose duty includes supervision and coordination of efforts from the different branches of government. According to Luthans (2013), ministers are charged with the responsibility of pl anning and executing public policies and national programs. In the recent past, Qatar staged a government restructuring exercise on its ministries and supreme councils. Typical development within the restructuring process included modernization of governance through integration of technological systems, and formulation of clear, non ambiguous mandates for each ministry. In addition, the vision seeks to create a sustainable business environment accompanied by substantial space for civil rights.