Efficient Markets Hypothesis(Financial Economics) Essay

Efficient Markets Hypothesis(Financial Economics) - Essay Example The random movement argument of weak form of efficiency may not be valid argument as research studies have clearly outlined a positive correlation between degree of tending observed in prices as well as the time period. This therefore clearly outlines that the prices do not follow a random path but rather show certain trends. It is however, critical to note that these period are not relatively long but trends do emerge over certain period of time. Behavioral economists argue that markets are imperfect because of the behavioral and cognitive biases. Imperfections in the market emerge as a result of these cognitive behaviors and as such markets may not efficiently operate. These cognitive biases emerge as a result of overconfidence, information and representation bias and other human errors result into errors in judgments. These biases and human error does not allow investors to value the stocks properly and as such, markets show inefficiency. These errors often result into investors buying the growth stocks and ignoring value stocks and those who can reason correctly can profit out of this situation and hence can beat the market easily. Studies conducted on the Indian Stock Exchange outlines the weak form of inefficiency and suggested that the prices actually do not follow random prices. Various local studies in the developing countries have consistently shown the same results that the markets are weak form inefficient at least in the local developing markets. These studies have clearly shown that the markets may not be efficient in any form of efficiency. These arguments have also been supported by other empirical studies indicating that even the strong form of efficiency does not exist. Stocks having low P/E ratios tend to provide higher returns and thus can allow investors to earn abnormal returns if chosen wisely. Investors developing their studies based upon choosing the stocks on P/E ratio can beat the market. It

Labour Rights Essay Example | Topics and Well Written Essays - 1500 words

Labour Rights - Essay Example Indeed, every person is entitled to freedom of speech, but this should not make such rights take precedence over economic and political concerns. In the modern world, there is respect for Charter of Rights and Freedoms but does not give a pass to equal rights for people from different races, religion, color, sexuality and the likes. Even so, not everyone adheres to these guidelines; rampant discrimination continues in private. People get different treatments based on their appearances and sexuality, with bosses hiring based on the looks and beliefs of the prospective employees. This does not mean that it would always be the case, but that the prejudice is rife in the modern world. The rights of individuals would be put behind their backs because, in spite of acceptance of such rights, seniors in the workplaces determine how such rights are reinforced in the organization.  Even so, these rights are determinate and are well stipulated in the Charter of Rights and Freedoms and thus cr itical for consideration. All the rights listed in the statement are basic to every employee:1. The right to organize free from interference refers to the right given to every worker to undertake their tasks without meddling from any quarters. This is a significant right to all workers as it fosters their productivity and promotes a healthy workplace environment.2. The other right is the right to bargain collectively and to be bargained with in good faith. This right to collective negotiations is a useful tool when seeking mutual agreements. It is a crucial right in promoting participation thus allowing an organization to benefit from the diverse views of the different members. Participation allows people to adjust accordingly and adapt to issues they would previously not be comfortable with. Contribution from different people to an idea and the subsequent infusion makes people own a proposal, an important outcome for collective bargaining.3. Finally, there is the right to strike wi thout putting one’s job in jeopardy. This right allows workers to fight for their wants without putting their jobs on the line. Thus, workers should be allowed to voice their concerns without being victimized. This could be undertaken through a strike, thus the importance of this right.The critical part in the statement is the consideration of the other rights as overriding economic and political considerations. Whereas the enlisted rights are essential to all humans, the different classes in the society together with the existence of specific representations set some people above others politically and economically. The rights are important in a workplace setting but only manage to hold for a while in the society at large.