FINANCIAL THEORY QUOTE

"Financiers picture thousands of sellers and buyers coming together in the market place to match their bright minds, financial calculators and formulas to finally come to the correct price for each commodity. In these financial markets, the word of the valuations are accepted as the rule, so that one often thinks of prices as determining values, instead of vice-versa."

SOLVE and ANALYZE:

Do you agree or disagree with this quote? Explain in detail using your own words and applying financial theory learned in the course.

Total: 25 marks