Wk 5 Individual: Capital Market Efficiency Paper [due Mon]

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  1. Resource: Capital Market Efficiency Paper Grading GuidePurpose 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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Explanation & Answer

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Introduction

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.


Running head: CAPITAL MARKET EFFICIENCY

Capital Market Efficiency
Name
Institution
Date

1

CAPITAL MARKET EFFICIENCY

2

The capital market can be explained as a financial market in which equity-based
securities or long-term debts are bought as well as sold. For a given market to be efficient, the
share prices should have progressive data with clear information and exact time. The capital
market efficiency is generally determined by activities of a particular organization which entails
of the enlisting of the general data related to the important value security and security prices
(Akbas et al., 2016).

The b...


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