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.

---

Definitions:

Melatonin

A substance secreted by the pineal gland that controls the patterns of sleeping and waking.

Dopamine

A neurotransmitter associated with pleasure, movement, and attention in the brain.

Cortisol

Cortisol is a steroid hormone released by the adrenal glands in response to stress and has multiple functions including regulating metabolism and immune response.

Leptin

A hormone produced by adipose (fat) cells that helps to regulate energy balance by inhibiting hunger, which in turn diminishes fat storage in adipocytes.