#F4E
Market Efficiency vs. Market Anomalies: Understanding how markets process information and whether they always reflect all available information accurately.

Externalities: How financial decisions can lead to unintended consequences for society or the environment.

Moral Hazard: The risk that one party may take on more risk because they are protected against the consequences, often seen in banking and insurance sectors.

Systemic Risk: The potential collapse of an entire financial system or market, which could be triggered by the failure of a single entity or market.

Regulatory Response: How governments and regulatory bodies react to market failures or crises to prevent future occurrences.

Impact on Inequality: How financial markets might exacerbate or mitigate social and economic inequalities.

Behavioral Finance: Insights into how psychological influences and biases affect the financial behaviors of individuals and entities.

If you're looking for a discussion on a specific aspect or want help with a particular concept or question from this week's material, please let me know!

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Market Efficiency vs. Anomalies

Market Efficiency vs. Market Anomalies:

Market Efficiency:

Definition: Market efficiency refers to the degree to which stock prices in financial markets reflect all available, relevant information. The Efficient Market Hypothesis (EMH) posits three forms of market efficiency:

Weak-form: All past trading information is already reflected in stock prices. Therefore, technical analysis cannot consistently produce superior returns.