Explain Why It Is That in an Efficient Market,investments Have

question 64

Essay

Explain why it is that in an efficient market,investments have an expected NPV of zero.

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Definitions:

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Bipolar Disorder

A mental health condition characterized by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Multiple-Personality Disorder

Now known as dissociative identity disorder, a psychological condition where an individual possesses two or more distinct identities or personality states.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality into fantasy and delusion, and a sense of mental fragmentation.