Write an essay between 800 and 1200 words (excluding references), consisting of three tasks:

1. Read and summarize the following article:

.    Malkiel, B. G. (2012). The Efficient-Market Hypothesis and the Financial Crisis. In A. S. Blinder, A. W. Loh, and R. M. Solow (Eds.), Rethinking the Financial Crisis, Russell Sage Foundation, New York.

2. Explain the efficient market hypothesis (EMH), behavioural finance, and theirrelevance in explaining asset price bubbles.

3. In the end of the article, Malkiel concluded that“EMHand behaviouralfinance should not be considered as competitive models”.

Discuss how he reached this view, and provide your view on this statement.

General Guideline: The essay should start with the introduction, main body and the conclusion. Make sure that in your essay, all the three tasks are carried out.

Criteria and Marking:

The total mark for this assignment is 30, which consists of the following criteria:

.    Article summary (4 marks)

.    EMH and behavioural finance (6 marks)

.    Discuss the author’s view and your view (10 marks)

.    Writing Quality (5 marks)

.    Presentation (1 mark)

.    Reference (4 marks)

In the Writing Quality criterion, your writing style, essay flow and grammar/spelling will be examined. The Presentation criterion includes various details such as document format, identification and compliance of word limit. In addition, there are some general points to consider:

.    Your essay must have a cover page detailing your ID and word count.

.    Remember to give a total word count (excluding references) on the cover page.

.    You cannot use any bullet points in the summary.

.    Any reference style is allowed, but it must be consistent (i.e. same style throughout the essay).

.    Please check you citation’s accuracy, even if it’s pre-filled from Google Scholar or UQ Library.

.    You cannot cite Wikipedia or Investopedia.

.    If graphs/figures are used, remember to quote the source.

.    Use academic writing style and not creative writing style.

.    Do not plagiarize! It will be dealt with very seriously in UQ and is simply not worth trying.