1. What is the risk free rate? Why is it important in Financial Markets? What...
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Accounting
1. What is the risk free rate? Why is it important in Financial Markets? What financial Asset approximates it?
2. Since financial markets are well regulated and efficient, all securities should earn the same return. Agree / Disagree and Why?
3. "If financial markets are inefficient, investors could use available information ignored by the market to earn abnormally high returns. Is this statement accurate? Always? Why? Why not?
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