E-education if capital markets are truly efficient then the

Question

E-education

• If capital markets are truly efficient, then the sale or purchase of any security at the prevailing market price is generally a zero-NPV transaction. Are you familiar with any transactions that do not follow this principle? If so, what are/were they? Please share with the class what they are/were and why you think that they didn't follow this principle.
• Try to replicate the "random walk" experiment presented in this theme: Standard and Poor's Index vs. Coin Toss. Choose a stock from the market to accomplish this. Prepare a graphic similar to the one discussed in this theme, and share it with the class.
• What is your opinion of financial analysts who are technical analysts? Or those who are fundamental analysts? Which type do you believe is the most accurate, and why? Share your thoughts with classmates in the discussion Forum. Be sure to cite examples of where technical and fundamental methods seem valid or not valid.
• Discuss the advantages and disadvantages of financing capital expenditures through the use of internally generated cash. Cite cases where it is more effective and efficient to fund through internal funds and external funding sources; why would a financial manager choose one method over the other?
• Find two publicly traded companies of your choosing. Look on the Internet for their financial information to see who the majority shareholders are for the corporation. Are they individual shareholders? Are they institutional shareholders (like mutual funds or pension fund organizations)? What are the implications of each type of majority shareholder with respect to the decision making that goes on at the firm?
• If you were the CFO of a firm, what ways could you employ to make the issuance of your company's bonds more attractive in the market? In answering this question, research the current prices and bond yields of a few companies. Compare and contrast these yields with respect to what you perceive of the value of those companies.