The purpose of this assignment is to allow the student anopportunity to explain what it means to have an efficient capitalmarket. Students will gain an understanding of the different levelsof market efficiency and how behavioral finance can inhibitreaching market transparency.
Explain in 525 words what it means to haveefficient capital market, including:
- Describe the behavioral challenges in achievingefficiency.
- Discuss the three forms of market efficiency.
- What are the implications to corporate finance?
- Would you consider the real estate market an efficient capitalmarket? Please explain why or why not.
