Financial Management
Question
“For the first time in history, access to the observations, wisdom
and emotional reactions of millions of people globally is available
in realtime. Social media data represents a collective barometer
of thoughts and ideas touching every aspect of the world.
As social platforms increasingly become a primary means of
communication for our age, asset managers, equity analysts and
high frequency traders are incorporating leading indicator data
from these platforms into investment decisions…”
Seth McGuire (2015)
https://gnip.com/docs/gnip-smm-nf.pdf
Required:
1. Explain the efficient market hypothesis
2. Critically discuss:
a. the impact of social media on stock market efficiency and
b. the wisdom of using information from social media to make investment decisions.
You are expected to refer to text books, academic journals and other relevant academic sources. Your assignment will be assessed for style, demonstration of depth of knowledge, rigour, and clarity. Attention is drawn to the University’s policy on plagiarism (see Module Handbook).
Remember that references should be provided.
Maximum 2,500 words. Submissions in excess of this limit will be marked up to the word count limit only! Reviewing to decide on the most relevant information; editing out and re-working are essential skills in report writing.