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Why are investors and managers concerned about market efficiency?

Why are investors and managers concerned about market efficiency?

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Answer #1

Well, Market efficiency is one of the main factor to measure the overall performance of market. An investor would always look for an efficient market with  high sales growth, stable government, technological advancements and low inflation rate because these positive scenario will give maximum returns for their investments.

If their is any negative impact on market efficiency it will directly impact the overall performance of the money. For example, at present situvation of covid-19 situation is very worse because no proper manufacturing happenings, company has to shut down because of lockdown and people are facing unemployement leads to less money for spending which affects overall market efficiency.

Therefore investors and managers always look for overall market efficiency before investmensts.

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