Explain market price and the intrinsic value of shares

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The table below provides stock market information for three different countries.

 

Country A

Country B

Country C

Information asymmetry 

Moderate

Low

Moderate

Transaction Cost

Moderate

Moderate

High

Number of market participants

Moderate

Moderate

Low

Using the knowledge you have obtained in this unit, explain which country you believe would have the largest and which country would have the smallest difference between market price and the intrinsic value of shares listed on their respective securities exchange?

Reference no: EM133074983

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