Question: QUESTION 2 20 points Save Answer a. Within CAPM, discuss some of the anomalies to market efficiency that have been detected in academic research. Taken
QUESTION 2 20 points Save Answer a. Within CAPM, discuss some of the anomalies to market efficiency that have been detected in academic research. Taken together, do these anomalies provide concrete evidence that the market is inefficient? Explain. (Word limit - 250 words +/- 10%) (15 marks) b. Suppose the current exchange rate for the Polish zloty is 28.5/. The expected exchange rate in 5 years is 25.2/. What is the difference in the annual Inflation rates for the United Kingdom and Poland over this period? Assume that the anticipated rate is constant for both countries, (Round your answer to 4 decimal places). (5 marks) For the toolbar, press ALT+F10 (PC) or ALT+FNF10 (Mac)
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