Explain what is meant by market efficiency

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Reference no: EM131558744

Essay Questions:

1- Do the NPV and IRR decision rules ever conflict? Discuss.

2- What’s wrong with Payback as a decision criteria? If two companies valued the same capital project, should the resulting NPVs be the same? Discuss.

3- Explain what is meant by market efficiency.

4- Does the EMH imply pricing perfection? Do stock market bubbles disprove the EMH?

5- What is Beta? How is it related to expected return?

6- A company can’t spend its Net Income. Explain why.

7- Is it always correct to reject a capital project that has an IRR less than its WACC?

Reference no: EM131558744

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