Discuss the meaning of an efficient
market. What are some of the limitations to the efficient market
hypothesis?
Discuss some of the factors that a firm
can and cannot control when assessing their Weighted Average Cost
of Capital (WACC)
Critically explore the concept of efficient markets and discuss
to what extent financial markets such as the equity and foreign
exchange markets are informationally efficient. Support your answer
with relevant examples. (20marks)
Critically explore the concept of efficient markets and discuss
to what extent financial markets such as the equity and foreign
exchange markets are informationally efficient. Support the answer
with relevant examples.
Are the markets efficient? If the markets were completely
efficient, how would you explain the dot-com bubble of the late
1990s and the subsequent bear market? Compare and contrast this
episode with the current housing market.
security markets have been described as random walks and
efficient markets. What does each of these terms mean and how to
the relate to the stock market? What make a market efficient and
what are the consequences of efficiency for fundamental and
technical analysis?