Fundamental valuation efficiency of financial markets

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Question: (a) To what extent do you believe in information efficiency of financial markets? Discuss your position.

(b) To what extent do you believe in fundamental valuation efficiency of financial markets? Discuss your position.

(c) Do you believe that "speculative bubbles" (speculative booms in prices that are not based on rational economics but rather on "mass psychology") exist in financial markets? If so, how can one recognize them? Could one consistently achieve superior returns by exploiting such overreactions by financial markets? Discuss.

Reference no: EM131749790

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