Underperforming Investment Strategy

It was stated that under Weak-Form EMH you cannot design an investment strategy which "beats the market" (gives you higher return than average market return, given the riskiness), if such a strategy is based only on analyzing past price movements. Is it possible to design an investment strategy, based on past price movements, which systematically underperforms? By underperforms it is meant that its expected return is lower than average market return on portfolios with the same variance. Please provide mathematical proof if possible

Weak Form EMH

Question enclosed!

Compute the returns for each of the final four years, the holding period return, and the annualized return. Compute the standard deviation of returns - using the attached information.

1. Consider the following information 1998 1999 2000 2001 2002* Year end Stock Price 15.15 17.10 21.00 20.05 11.05 Year end Dividend 0.15 0.15 0.18 0.18 0.10 * In 2002, there was a 2 for 1 stock split Compute the returns for each of the final four years, the holding period return, and the annualized return. Compute the standard deviation of returns. See attached file

Portfolio returns

see attached

International Finance (Bonds)

Create an idea of an unusual bond and analyze its features.