a)A stock hasa beta of 1.5 and an is the risk free rate if the mauked rate of retum is 12.57. expeeted retom of 16. 35 Y.What b) You want to retire in 25.4ears. You currontY have $200,000 saed and you Interest mte wll you need to earm to meet your goal? beliene you need $ 1,20000 at retirement. hhat annual c) The expected growth rate of dividends is -1 for ia s tock carrenitly priced at d 60,that yust paid a dividend af $7 and has a required redur n of 20%. oota s

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.