Market hypothesis theory
The efficient market hypothesis theory states that share prices usually reflect all the available publicly available information and trades on their market values. An investor is, therefore, unable to beat the market by either buying the undervalued stock or selling the overvalued stock. Besides, one cannot outperform the market either through the implementation of market timing strategies nor trend analysis. If those assumptions hold, then investors can only generate superior profits by bearing high risk. There are three types of efficient market hypothesis. That is, weak, semi-strong, and strong. Weak form contends that stock prices reflect all available public information but not new information, which is not yet public. Semi strong argues that the stock prices quickly reflect new information rendering fundamental analysis less reliable. Strong form urges that stock prices reflect both public and private information. Based on the above description, the platinum stock market has over the three years changes from a weak form to a strong