1. Describe the concept of market efficiency in thecontext of
pricing securities. Explain the threedifferent levels of market
efficiency
2. Why is money you receive at some future date worth less to
you than money you receive today?
if the interest rate (i.e. discount rate) rises, what effect
does this have on the present value of payments you receive in the
future?
Explain market efficiency define the concept of market efficiency and the efficient market hypothesis (EMH).
a. Provide an argument that either supports or refutes the application of EMH.
Use research and examples of investors. i. Warren Buffet, Joel Tillinghast, Will Danoff – consistently do better than the market.
ii. Consider the risk with investing based on the EMH premise versus the risk of ignoring EMH.
The three forms of market efficiency are different in the
information which is available to you, and not in what you should
or should not be able to achieve using this information. (True or
False)?
a)Explain the concept of behavioral finance. How does relate to
market efficiency?
b)Bonds are issued by the Treasury, corporations, and
municipalities. What are some common characteristics of these bonds
and what are their differences? (risk, taxes, purpose for issue,
how they are repaid)
**Use websites and no copy paste please