The purpose of this assignment is to allow the student an opportunity to explain what it means to have an efficient capital market

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.

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A capital market can be described as the ownership of the capital stock of an economy being distributed. Similarly, it can be described as a market in which decision making of both firms and investors involves the choosing of securities that have knowledge that is all available. For an efficient market, therefore, there ought to be……………………………