This is more valid than the previous point. The market had ignored publicly available information. The market had not valued the stocks on the company's fundamental features. Hence by careful analysis of the available information abnormal returns could be made by the fundamental analyst.
6.0Conclusion
From this report we can see that the Internet-related stock market has been in the weak form of EMH and prices of these stocks were highly overvalued, hence when the market discovered this it had led to the crash of the dot com companies.
The concept of EMH plays an important role in the valuation of the shares based on the type of the information available. Hence it is important for all investors to study this concept and apply it in their investment decision making in order to gain positive returns making use of the market inefficiency.
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