Describe the events that occur in an efficient market in response to new information that causes the expected return to exceed the required return What happens to the market value ...

The efficient market hypothesis says that in an effic ...

Describe the events that occur in an efficient market in response to new information that causes the

Question:

Describe the events that occur in an efficient market in response to new information that causes the to exceed the required return. What happens to the market value?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...