Learning Module 3 of Equity Investments 11–14% of the exam
Market Efficiency
7 lessons. About 0 minutes in cram mode, 0 minutes in full.
Lessons for this module are being written. The outcomes and lesson plan below are final.
Lessons
- 1 The Concept of Market Efficiency
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- 2 Factors Affecting Market Efficiency Including Trading Costs
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- 3 Forms of Market Efficiency
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- 4 Implications of the Efficient Market Hypothesis
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- 5 Market Pricing Anomalies - Time Series and Cross-Sectional
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- 6 Other Anomalies, Implications of Market Pricing Anomalies
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- 7 Behavioral Finance
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What the exam expects you to do
- Describe market efficiency and related concepts, including their importance to investment practitioners.
- Contrast market value and intrinsic value.
- Explain factors that affect a market’s efficiency.
- Contrast weak-form, semi-strong-form, and strong-form market efficiency.
- Explain the implications of each form of market efficiency for fundamental analysis, technical analysis, and the choice between active and passive portfolio management.
- Describe market anomalies.
- Describe behavioral finance and its potential relevance to understanding market anomalies.