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securities market prices would if the definition of an efficient securities market were literally true What prevents prices from self-destructing

securities market prices would if the definition of an efficient securities market were literally true What prevents prices from self-destructing

 securities market prices would “self-destruct” if the definitionof an efficient securities market were literally true.What prevents prices from self-destructing? (2 marks)Does the argument that prices would self-destruct conflict with efficient securitiesmarket theory? Explain why or why not. (2 marks)Given that securities prices do not self-destruct, what are the implications for investorsand financial reporting? (2 marks) Question 3 (8 Marks)One implication of market efficiency in the semi-strong form is that market pricesfluctuate randomly over time.Requireda. Describe what is meant by “market efficiency in the semi-strong form.” Explain howthis is different from “market efficiency in the strong form.” (4 marks)b. Explain why stock prices would fluctuate randomly over time when the market isefficient in the semi strong form. (4 marks)

abhinav behal 17-Mar-2020

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