Purpose of Assignment 

The purpose of this assignment is to allow  the student an opportunity to explain what it means to have an efficient  capital market. Students will gain an understanding of the different  levels of market efficiency and how behavioral finance can inhibit  reaching market transparency. 

Assignment Steps 

Resources: Microsoft® Word 

Explain in 525 words what it means to have efficient capital market, including: 

• Describe the behavioral challenges in achieving efficiency.  
• Discuss the three forms of market efficiency. 
• What are the implications to corporate finance? 
• Would you consider the real estate market an efficient capital market? Please explain why or why not.