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Are the markets efficient? If the markets were completely efficient, how would you explain the dot-com...

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Finance

Are the markets efficient? If the markets were completelyefficient, how would you explain the dot-com bubble of the late1990s and the subsequent bear market? Compare and contrast thisepisode with the current housing market.

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Efficient market is one where the market price is an unbiased estimate of the true value of the investment It means that prices can be greater or less than true value but these deviations are random in nature But in real world there are deviations from the efficient markets hypothesis as people are not always rational The dotcom    See Answer
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Are the markets efficient? If the markets were completelyefficient, how would you explain the dot-com bubble of the late1990s and the subsequent bear market? Compare and contrast thisepisode with the current housing market.

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