"An Allocative Efficient Market Implies an Equitable Market

question 17

Essay

"An allocative efficient market implies an equitable market." Evaluate this statement.

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Definitions:

Normally Distributed

This describes a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Average Balance

The mean value derived from summing all balances over a certain period and dividing by the number of periods.

Standard Deviation

A gauge for the level of variance or scattering of values within a dataset.

Exponential Distribution

A continuous probability distribution used to model the time between events in a process where events occur continuously and independently at a constant average rate.