efficient capital marketing

Purpose of Assignment
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
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.
Submit your assignment.

Solution Preview

To have an effective market, there must be a certain market cost which is an impartial gauge of the actual estimation of assumptions. There are various ideas are present in this determination. First, it is not necessarily required that in order to have a productive market the cost of the market has to be equal to genuine incentive always.

(661 words)