Question

You want to save for your retirement. What should you do if markets are largely efficient?...

You want to save for your retirement. What should you do if markets are largely efficient? What should you do if they are not efficient?

Homework Answers

Answer #1

An efficient market indicates that share prices are priced correctly based on all available and current information.

An inefficient market is just opposite, where share prices may be undervalued or overvalued and don’t give exact picture.

An investor must ensure that his/her investment is in accurate share price, because it makes easy understanding the future – getting deprived would become the minimum. Therefore, I should invest in an efficient market for retirement benefits.

I should not invest in an inefficient market in anyway.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
in order to save for your retirement you want to save $3000 every year for 14...
in order to save for your retirement you want to save $3000 every year for 14 years starting one year from now. the annual interest rate on your savings account is 7%. jow much monry will uou have in your account in 14 years?
Write your ideas and expectations for your retirement. At what age do you want to retire?...
Write your ideas and expectations for your retirement. At what age do you want to retire? How many years do you have to prepare before you reach that age? Will you want to stop working at retirement? Will you want to have a retirement business or start a new career? Where and how would you like to live? How do you think you would like to spend your time in retirement? How much have you saved toward retirement so far?
You want to come up with a plan to save for retirement. You will contribute to...
You want to come up with a plan to save for retirement. You will contribute to your retirement account monthly for 40 years. One month after your last contribution you will begin monthly withdrawals of $7,500 from that retirement account. You earn 6.6% APR while you’re contributing to your retirement savings and 3.6% APR while you are withdrawing. You want to have enough money to finance 35 years in retirement. (Assume compounding frequencies match the payment frequencies.) What variable would...
Planning for Your Retirement Where do you plan to live? What interests do you want to...
Planning for Your Retirement Where do you plan to live? What interests do you want to pursue? How much money will you need to pursue your chosen lifestyle? What do you need to do now to make your retirement plans a reality? Where you would like to retire? Research the area. What do you need to do to maintain or regain your health? What financial plans do you need to make today to live the retirement of your dreams?
Your goal is to become a millionaire by retirement. How much do you need to save...
Your goal is to become a millionaire by retirement. How much do you need to save each month to have $1,000,000 assuming you have 35 years to invest in an account that earns 7.5% real rate of return? If you earn $5,000/month, what percentage of your monthly income do you need to invest for retirement?
What do you think of the idea that markets are efficient? Do the necessary assumptions seem...
What do you think of the idea that markets are efficient? Do the necessary assumptions seem realistic to you?
Do you think markets are efficient and prices are “right”? bring arguments for your answer.
Do you think markets are efficient and prices are “right”? bring arguments for your answer.
You are trying to decide how much to save for retirement. Assume you plan to save...
You are trying to decide how much to save for retirement. Assume you plan to save $ 5,500 per year with the first investment made one year from now. You think you can earn 12.0​% per year on your investments and you plan to retire in 38 ​years, immediately after making your last 5,500 investment. a. How much will you have in your retirement account on the day you​ retire? b.​ If, instead of investing $5,500 per​ year, you wanted...
What do you think Keynes would think of the efficient markets hypothesis? Explain
What do you think Keynes would think of the efficient markets hypothesis? Explain
How much will you have to save each month until retirement if you want to retire...
How much will you have to save each month until retirement if you want to retire in 35 years and withdraw $350,000 per year for 25 years during retirement and expect to earn 11% until retirement and 6% during retirement? A. $4,685 B. $908 C. $2,135 D. $719