University of Houston Nobel Prize in Economics Alongside Eugene Fama Questions

1. Based on the analysis you have done about the firms; please provide a recommendation (such as “buy” “hold” or “sell”) for each firm. What is your rational for each recommendation?

2. Let us assume you are busy and do not have time to read each firm’s financial statements, is it a good idea to just follow analysts’ recommendation when investing (it is called free ride)? Why?

3. “On October 14, 2013, it was announced that Shiller had become a recipient of the 2013 Nobel Prize in Economics alongside Eugene Fama and Lars Peter Hansen.His lecture at the prize ceremony explained why markets are not efficient. He presented an argument on why Eugene Fama’s Efficient Market Hypothesis (EMH) was fallacious.”

“In 2017, Richard Thaler was awarded the Nobel Memorial Prize in Economic Sciences for his contributions to behavioral economics. In its Nobel prize announcement, the Royal Swedish Academy of Sciences stated that his “contributions have built a bridge between the economic and psychological analyses of individual decision-making. His empirical findings and theoretical insights have been instrumental in creating the new and rapidly expanding field of behavioral economics.”

Research and summarize Robert Shiller and Richaed Thaler’s main argument about the financial market.

4. Are people rational when investing? If people are not rational all the time, will the financial market still be efficient? Please read the below news and provide your thoughts about investing in the airline industry.

https://www.cnbc.com/2020/05/02/warren-buffett-says-berkshire-sold-its-entire-position-in-airlines-because-of-the-coronavirus.html (Links to an external site.)

https://www.bloomberg.com/news/articles/2020-06-04/american-air-to-boost-flying-74-on-surprise-demand-rebound (Links to an external site.)

5. Go to the Robinhood APP, click ” Trade”, then ” Buy”, then under the drop-down “Market Order”, how many “order types “? What are they? What do they mean?

6. Go to the Robinhood APP, click ” Trade”, then ” Sell”, then under the drop-down “Market Order”, how many “order types “? What are they? What do they mean?