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Give Two Conditions That Are Important to the Efficient Market

question 50

Essay

Give two conditions that are important to the efficient market theory. List one implication of the efficient market theory.


Definitions:

Coordination

The act of organizing or arranging elements in a system or activities among a group of agents to achieve desired outcomes.

Agreement

A mutual understanding or arrangement, often formalized by a contract, between parties regarding their rights and responsibilities.

Standard Of Behavior

The expected and acceptable way of acting or behaving in a given group, community, or society.

Laissez-Faire Leadership

A leadership style characterized by minimal supervision, where leaders provide the tools and resources needed but do not directly manage the process.

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