Question

Are financial markets energy-efficient?

Are financial markets energy-efficient?

Homework Answers

Answer #1

Market efficiency would be the change in market prices due to the change in the external environment.

Financial markets do have a positive outlook towards efficient energy (sustainable or renewable) and thus it would be very easy to conclude that the market is energy efficient. However if the question is if the market has factored in the efficiency already, the answer would be that the factoring is in progress and when there are major breakthroughs in the energy sector we would see the real potential of growth which this sector offers.

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