Does the efficient market theory apply on the FOREX market Essay

Does the efficient market theory apply on the FOREX market - Essay Example If the trend is looking upwards, the person â€Å"B† will buy the stock. In both cases, both persons got to the same conclusion of buying the stock of the same company, but their methods were entirely different. The person â€Å"B† does not even have to visit the company to do the technical analysis. Now implying the same method on the foreign exchange market, we can deduct whether the efficient market hypothesis is workable in the FOREX market or he not. For that we need to know the basics of the efficient market hypothesis. The efficient market hypothesis can be viewed as having three levels or stages; the weak form, the semi strong and the strong form. The weak form or the weak stage states that the price of the security or stock at any point in time reflects the true value of the stock, meaning that we cannot predict the stock’s movement from the price of the stock. All the values or the fundamentals of the company (all the negative and positive aspects) are already reflected in the stock price; therefore it is useless to do the fundamental analysis. All the publicly available information has been incorporated in the stock price. The semi-strong form or stage of the hypothesis states that the current stock price reflects all the available public information and the prices instantly change to reflect the new public information. The third stage of string form efficient states that even the insider information cannot affect the stock price. 3. Rationale for the chosen topic My reason for choosing this topic is the huge appeal in the foreign exchange market. The greatest portion of finance is in the foreign exchange by volume. The reason for this trade’s usefulness is that every trade of goods, stocks, bonds, gold silver and the like... The aim of this discussion is to decide whether the efficient market hypothesis is applicable to the foreign exchange market or not. We will try to analyze a small portion from the history of the price fluctuations of the US Dollar Vs the Euro. We will see how the figures react against the technical analysis. We will test their validity and present our conclusion. My reason for choosing this topic is the huge appeal in the foreign exchange market. The greatest portion of finance is in the foreign exchange by volume. The reason for this trade’s usefulness is that every trade of goods, stocks, bonds, gold silver and the like is done through currency and there comes the conversion process. That is why it is so prevalent that to escape the ups and downs of the foreign exchange becomes impossible. The other rationale is that I’m interested in both the fundamental and technical analysis. I believe in the perfect fusion of the both. One important thing for the efficient market hypothesis to be effective is the assumptions, which serve as the rationale for it. One of the assumptions is that a large number of market participants are constantly analyzing the stocks and bonds. They do it on their own, independent of each other. This gives a more subtle and objective evaluation of the security.

Quality Management in the Hotel Escargo Essay Example | Topics and Well Written Essays - 250 words

Quality Management in the Hotel Escargo - Essay Example The essay "Quality Management in the Hotel Escargo" talks about the management strategy of the Hotel Escargo and how the hotel manages with prevention and appraisal costs. The writer argues that prevention costs should be ranked first before appraisal costs. This statement is true because business enterprises are required to first institute mechanisms to keep defects from occurring during the production process. Appraisal costs will arise when striving to detect defects through inspections, tests, and audits. I agree with the fact that most companies allow 10-15 percent to the prevent costs in typical situations; however, prevention costs should be maintained above 70 percent of total costs of quality. Olson argues that the in the ideal situation, the proportion of prevention is highest among the total costs of quality. Prevention costs that the management need to consider include quality planning, check-in and check-out system development and management, workforce training and employee development. Appraisal costs relevant to Hotel Escargo include room cleaning and inspection expenses, administering customer feedback survey, and room service audits. I agree with the writer of the assessment appraisal costs should be ranked second after prevention costs. The problem statement clarifies that there are aspects in check-in and check-out systems that need to undergo improvement. The management intends to develop a new process that is characterized by efficient and convenient in serving customers.