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In recent years, several securities firms have been guilty of using inside information when purchasing securities,...

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Finance

In recent years, several securities firms have been guilty ofusing inside information when purchasing securities, therebyachieving returns well above the norm (even when accounting forrisk). Does this suggest that the security markets are notefficient? Explain.

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4.0 Ratings (634 Votes)
Almost all the theories related to security markets be it Modern Portfolio Theory by Markowitz Capital Market Theory by Sharpe or Capital Asset Pricing Model the underlying principal is that Markets are efficient and all the players have same level of information available enabling them to make decision making However in real world it is not    See Answer
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