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Author Question: If capital markets are efficient, then (Read 24 times)

jace

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  • Posts: 541
on: Apr 25, 2021

Question 1

An efficient capital market is one in which
◦ security prices reflect available information.
◦ risky securities offer a positive rate of return to investors.
◦ information is distributed fairly.
◦ after-tax returns are equalized.
◦ prices fluctuate smoothly.

Question 2

If capital markets are efficient, then
◦ there is no reason to believe that prices are too high or too low.
◦ it is not possible to make money by playing the stock market.
◦ prices will adjust slowly when reacting to new information.
◦ historical price trends will give you a good idea of where prices are headed in the future.
◦ it is possible to profit regularly from publicly available information.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by jace on Apr 25, 2021

GCabra

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jace

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

aliotak

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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