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1. Explain the interactions among market efficiency, capital budgeting, and the cost of capital. (5 marks) 2. (5 marks) a. Give two examples of anomalies

1. Explain the interactions among market efficiency, capital budgeting, and the cost of capital. (5 marks)

2. (5 marks) a. Give two examples of anomalies in the financial markets.

b. What does the existence of these anomalies say about financial market efficiency?

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