Question
5. It is socially beneficial for the Federal reserve to issue warnings based on the current stock markets price/earnings (P/E) ratio. If the P/E ratio
5. It is socially beneficial for the Federal reserve to issue warnings based on the current stock markets price/earnings (P/E) ratio. If the P/E ratio is too high, then the Fed can warn investors that the market may be experiencing a bubble, so that investors can cool off and stop over-investing.
Is this a violation of the Efficient Market Hypothesis, and why?
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
IFRS 3rd edition
1118978080, 978-1119153726, 1119153727, 978-1119153702, 978-1118978085
