Fin251

Karing is right, this new lecturer is really crap. He talks too slowly like we're complete idiots. Missed the last two lectures and came late to today's. Lecture started talking about the price similarity between the prices of FBL on the NZX and ASX. Not sure if the prices have been converted to the same denomination [they have]. Then he's comparing the price difference in same product prices between Munchie Mart and supermarkets. Rationalizes it as market efficiency. Next example is why people should invest in financial instruments if the have a zero NPV. The rationale is still market efficiency and fairly priced. But the real question is, how do you know of the market IS efficient if you don't know who the participants are and their reason
or knowledge they used to make their market decision.

He's actually going through exan questions. More market efficiency stuff. There's a plot of mutual fund alpha values with the mean around zero. Forms of efficiency with regards to how recent the information used.
Simple story about cheating investors. You give random predictions about price movements. Simple case of subsetting your target population.

Beta of an asset does not mean the return is equal to the risk free rate.

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