Capital Market Efficiency, business and finance homework help

User Generated


Business Finance


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.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Hi,Find attached the completed work.Feel free to ask for any clarification or editing if need be.Looking forward to working with you in the future.Thank you.

Surname 1
Student’s Name
Professor’s Name
Course Title
An efficient capital market is that which has the information regarding the securities
value already incorporated into the prices in real time and in an accurate manner. The
fluctuations present in securities value are dependent on the present value of future cash flows.
For this reason, a capital market that is efficient enables these fluctuations to be reflected in the
current price of the securities (Vernimmen et al., 2014).
According to behavioral finance, the market is not efficient because of the several
challenges it is exposed to. To begin with, investors display no rationali...

Great! Studypool always delivers quality work.


Similar Content

Related Tags