Discuss the importance of market efficiency and explain why some markets are more efficient than others. •Explain the distinction between a stock's price and its intrinsic value, then discuss the two models that can be used to estimate a stock's intrinsic value.

What is meant by stock market efficiency? Name and explain three forms of stock market efficiency. Which form is most likely to hold? Which is least likely to hold?

Describe precisely one way that you would test if a particular stock market is strong-form efficient.

What stock valuation models are available?

Define Efficient Markets Hypothesis (EMH

What does the capital asset pricing model (CAPM) calculate?   a. The expected rate of return on an individual stock with respect to the risk-free rate of return b. The expected rate of return of an individual stock based on its overall risk c. The expected rate of return of an individual stock with respect to its market risk only d. The expected rate of return of an individual stock reflecting its financial risk Clear my choice

The objective function of an investor in a CAPM world is to what (mathematically) [what are your trying to maximize]? What is the major assumption about the distribution of returns that we have to make to get to this objective function?

Explain Market Analysis?

What is the Security Market Line (SML)? How isbeta related to a stock’s required rate of return?

What are the assumptions of efficient market hypothesis? Discuss.