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:

Adult Personality

The composite of personality traits, behaviors, and patterns of thinking that are developed in adulthood, forming an individual's distinctive character.

Genetics

The study of heredity and the variation of inherited characteristics among organisms.

Twin-study

A research method used to investigate the relative importance of genetics and environment by comparing the similarities between monozygotic and dizygotic twins.

Adoption Studies

Research methods that compare adopted children to their biological and adoptive families to understand the influence of genetics and environment on development.