BAFI 1008 – You are a trader and believe in the efficient

BAFI 1008 – You are a trader and believe in the efficient

BAFI 1008 – You are a trader and believe in the efficient market hypothesis (EMH)

Subject: Business    / Finance
Question
Q1) You are a trader and believe in the efficient market hypothesis (EMH). Argue why you think ratings companies are unnecessary with respect to the EMH.

Q2)
Now you are a ratings agent. You also believe in the EMH, but want to keep your job. How would you argue that ratings companies are important, even with the EMH? Discuss how you can reconcile your job with the EMH considering the different forms of the EMH.