Capital Market Efficiency Paper

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timer Asked: Feb 18th, 2019
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Question Description

  1. Purpose of Assignment The purpose of this assignment is to allow the student an opportunity to explain what it means to have an efficient capital market. Students will gain an understanding of the different levels of market efficiency and how behavioral finance can inhibit reaching market transparency. Assignment Steps Resources: Microsoft® Word Explain in 525 words what it means to have efficient capital market, including:
    • Describe the behavioral challenges in achieving efficiency.
    • Discuss the three forms of market efficiency.
    • What are the implications to corporate finance?
    • Would you consider the real estate market an efficient capital market? Please explain why or why not.
    Submit your assignment.

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Individual Assignment: Capital Market Efficiency Paper Purpose of Assignment The purpose of this assignment is to allow the student an opportunity to explain what it means to have an efficient capital market. Students will gain an understanding of the different levels of market efficiency and how behavioral finance can inhibit reaching market transparency. Resources Required Microsoft® Word Grading Guide Content Met Partially Met Not Met Total Available Total Earned 5 #/5 Partially Met Not Met Comments: Explained in 525 words what it means to have efficient capital market. Described the behavioral challenges in achieving efficiency. Discussed the three forms of market efficiency. Addressed the implications to corporate finance. Explained whether the real estate market is an efficient capital market, and why or why not. Writing Guidelines The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. Intellectual property is recognized with in-text citations and a reference page. Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise. Met Comments: Capital Market Efficiency Paper Grading Guide FIN571 Version 9 Writing Guidelines Met Partially Met Not Met Total Available Total Earned 2 #/2 7 #/7 Rules of grammar and usage are followed including spelling and punctuation. Assignment Total Additional comments: # Comments: 2 ...
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Tutor Answer

Marrie
School: Boston College

Attached.

Running head: ECONOMICS

1

Capital Market Efficiency
Name
Institution Affiliation

ECONOMICS

2

What Does it Mean to Have an Efficient Capital Market?
A market where the cost is an unprejudiced estimation of the actual value of its
investment is an efficient market (Nwaolisa & Kasie, 2012). The existence of an efficient
capital market means having a fair where recent information is reflected accurately by the
share value in the correct living period. An efficient capital market allows unsteadiness to be
revealed in the present value of securities since they differ irregularly (Nwaolisa & Kasie,
2012). Capital market efficiency is mediated by its success in blending and inducing
information about the primary worth of securities into a charge of securities. According to
Nwaolisa and Kasie (2012), the fundamental merit of securiti...

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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