Problem
I. How do financial markets that run freely and efficiently affect the standard of living in a country?
II. What does it mean for a financial market to be considered (i) informationally efficient and (ii) economically efficient?
III. Do you think investors can earn abnormal returns in financial markets that are at least semi strong-form efficient?
IV. When the SEC approves a stock issue, it does not provide an opinion about the value of the stock. Do you think the SEC should give an opinion to investors on the appropriate value of the stock being issued? Explain.
V. What economic functions do financial intermediaries perform?