Question

Role of macroeconomics in managerial decision making

Answer 1

asset prices fully reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information. The efficient market hypothesis was developed by Eugene Fama who argued that stocks always trade at their fair value, making it impossible for investors to either purchase undervalued stocks or sell stocks for inflated prices. As such, it should be impossible to outperform the overall market through expert stock selection or market timing, and that the only way an investor can possibly obtain higher returns is by chance or by purchasing riskier investments. His 2012 study with Kenneth French supported this view, showing that the distribution of abnormal returns of US mutual funds is very similar to what would be expected if no fund managers had any skill—a necessary condition for the EMH to hold.

Answer 2

Administrative financial aspects as a science is valuable to chiefs in settling on choices identifying with a firm client's base, rivals and vital future choices, since it helps the administrator of the gathering or gatherings of individuals settling on the choices to build their concern investigation aptitudes and in addition detailing answer for be viable.