Learning Outcome Statements

1. The Concept of Market Efficiency

a. describe market efficiency and related concepts, including their importance to investment practitioners;

b. distinguish between market value and intrinsic value;

c. explain factors that affect a market's efficiency;

2. Forms of Market Efficiency

d. contrast weak-form, semi-strong-form, and strong-form market efficiency;

e. explain the implications of each form of market efficiency for fundamental analysis, technical analysis, and the choice between active and passive portfolio management;

3. Market Pricing Anomalies

f. describe market anomalies;

4. Behavioral Finance

g. describe behavioral finance and its potential relevance to understanding market anomalies.