The table below provides stock market information for three different countries Country A Country B Country C Information asymmetry Moderate Low Moderate Transaction Cost Moderate Moderate High Number of market participants Moderate Moderate Low Using the knowledge you have obtained in this unit, explain which country you believe would have the largest and which country would have the smallest difference between market price and the intrinsic value of shares listed on their respective securities exchange 6 marks

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Question: The table below provides stock market information for three different countries. Country A Country B Country C Information asymmetry Moderate Low Moderate Transaction Cost Moderate

The table below provides stock market information for three different countries.

	Country A	Country B	Country C
Information asymmetry	Moderate	Low	Moderate
Transaction Cost	Moderate	Moderate	High
Number of market participants	Moderate	Moderate	Low

Using the knowledge you have obtained in this unit, explain which country you believe would have the largest and which country would have the smallest difference between market price and the intrinsic value of shares listed on their respective securities exchange?

6 marks

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