What affects stock prices or everyday basis?
Are markets efficient or a random walk?
If Current Price = PV of future cash flows for each share discounted at cost of equity and if stock prices change everyday than does cost of equity change everyday or cash flows change everyday ?
Is CAPM the right model for measuring the cost of equity for efficient markets or just a tool for efficient markets.? Does Cost of Equity determing P/E of stocks ? What about Sectoral effects?
Why do stock prices change every day? Is that so because of buying and selling?
If Behavioural effects determine stock prices how does it change every day?
If marakets are efficient than markets should move only on events, but what are these events? How many events take place each day? What are these events?
How do markets discount/price these events?
If large institutional investors use market models, how do they restimate risk everyday? Do they even use these models.
What causes market in efficiency?
Transaction Costs ?
How Soon do people with information exploit this assymetry?
Minimum Tick Size?
What about trends? Bollinger Bands, Inverted Heads and shoulders, cups and handle , break outs? How come do market technical analysts make a living?
What about irrational exhuberence?
So how efficient are markets anyway? Perfectly efficient or Varyingly efficient?