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********* CAPITAL ************* *************** ************ it means to **** ********* ******* *************** ******* ****** is * **** ** market ***** *** ********** ****** reveals *** ******** information in ** ******** ****** *** in **** **** ******* ****** efficiency is ******** judged ******* *** ******* in ************* ** **** ** ********** generalinformation about the ***** ***** ** ********** **** *** ***** ** ********** ********* ******* markets ********** *** ************* ** ** ********* ** *** ******* ****** ** *** securities(Fama 2005)Describe *** behavioral ********** ** ********* efficiencyThere *** ******* behavioral ********** ** ********* market ********** ***** ** *********** ** ********* ******* all *** *********** *********** ** ********* ** *** market **************** *** ********* ** *** ******** information in ******* mannerBehavioral economists attribute *** ************ in ********* ******* ** * recipe ** biases like ************ ************** *********** bias ************** **** ***** ***** *********** ***** mistakesrelatingto ********* *** ********** of information (Malkiel ***** ***** ******** **** ** **** ********* ********** ****** ****** to value ***** ****** buying at ********* *********** assists ***** *** ****** ******** ** profit **** ********** neglected ***** ****** *** *** *********** ******* ** ****** ****** ********* Investors desire ***** ***** in autumn ** **** ** ******* ***** ** ************* *** ***** ***** ** market ******************* ************ ********* ********** ** ********* ****** from *** **** ****** prices ****** be ********* Excess ******* **** cannot ** receivedthrough ***** ********** approachesthat *** *********** ** either historical ************** or other ********** data **** ******** **** ****** price schedules are commonlydetermined ***** ** the *********** ********* in *** ***** ****** ***** ****** ***** ** ****** a ****** movementSemi-strong-form ************************** *************** type ** ****** ********** the ****** ** *** ********** replicate *** the *********** that ** **************** ********* in this kind ** ****** ** not ************************* returns ******** ** ** *** ** good **** ** there is ******** *********** information ************* ** **** **** ** ****** ******* of the **** that **** *********** ** *** ** *** public ****** of *** ********** can **** **** if *** information ** *** ********* **** what *** been **************** 2005)Strong-form ************ *********** ********** ******** ***** reflects all *** *********** ****** ***** **** ******* *** **** ** one can ************ ******* ** **** for *********** efficiency ***** ** * **** *** market tobe ******* ***** investors ****** ********** ************ returns *** * **** timeWhataretheimplicationstocorporatefinance?The ****** ***** ** *** **** ****** revealtoday’s current value of *** firm’s *********** ** *** ****** *** **** ***** ******** ******* markets were ***** efficient **** *** ******* ************ for corporate finance ***** ******** **** ** ******** *** ******* ****** ***** ** *** **** Second ******** ******* are ******* ******** ** a firm’s *********** ***** ** ******* ** ******* by manipulating earnings *** share ****** ** case ** new shares ***** given *** ** ****** prices **** ******* balanced assessment ** ****** ******* ****** the **** financial markets **** ***** ********** ***** ****** ** upper ***** ** such ******* ****** ********** *** ******** the **** ****** market an ********* capital ******* ****** ******* *** ** *** notNoIwould *** ******** *** **** estate ****** ** ********* capital ****** ***** ******** estate doesn’t **** ******** *** ********** ******** * ***** **** **** **** efficient ******* ********* ************ may **** ****************** *** quality of information According ** ******* ****** *** inefficiencies ** *** real estate ******* ***** it ******** to **** unusual profits since there is a lot ** information not ********** in the prices References:Fama * * ****** Efficient ******* markets: * ****** of theory *** ********* work *** ******* ** Finance ***** 383-417Malkiel GB ****** Efficient ******* ******** II *** ******* ** finance ***** ************** * ******* ************ ** ********* ********* *** ********** ************************ *** ******* BudgetingThe journal ** Finance ***** ******
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