i have uploaded the full question and examiner's guide.

this is my answer to qn 9 part (a) but i dont think it is complete. would need help with this question. could you provide a detailed explanation to qn 9 part (a)

Question : ca) Describe how information asymmetries in the capital markets can lead to allocational inefficiency in the economy and how valuation and securines analysis can help to overcome this. (10 marks) A state of asymmetric information exists in any transaction if one party has ineoumanion and the other lacks, this is a major cause for allocation inefficiency in the economy. Which leads to improper setting of the correct price according to the law and demand. The major two asymmetric pieces of information are advere selection and moral hazard. Imperfect impormation causes an imbalance in power. So a piece of accurate information is essential for powerful economic decisions. This can be overcome by valuation and secunities analysis. The purpose of a valuation is to track the performance and strategic decision-making in terms so the appropriate changes can be made in value. Securities analysis ensures that stocks are priced correchy qccording to the inherent inuestment Of properties. On ensuning these two, there can be increase in the efficiency also gliocanon inefficiency can be overcome