Jason Has Just Attended a Seminar in Which He Learned

question 10

Essay

Jason has just attended a seminar in which he learned about the concept of efficient
markets. He tells you what he has learned and his conclusion: "The U.S. financial
markets are largely semistrong efficient, which means that I can't expect to earn any
excess returns on my investments, no matter how much risk I take, since I don't have
any insider information. Therefore, I should just keep my money in a savings account
or invest in a risk-free asset like a Treasury bond." Comment on Jason's conclusion.

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Definitions:

Secondary Data

Information that has been previously gathered for purposes other than the specific research project at hand, including reports, studies, and databases.

External Secondary

Refers to secondary data collected from sources outside of the organization, used for research or analysis.

Published Data

Data that has been made available to the public through various means such as books, websites, and public records.

Internal Secondary Data

Data previously collected and available within an organization for purposes other than the current need or analysis.