Merging New Paradigm in Finance Essay Example Pdf
Academic finance has transformed significantly from the days where most academics and practitioners believed that markets were efficient. Traditionalists argue that the market prices assets at their fair value, assuming that all relevant information pertinent and relevant to an asset is known by all market participants-in reality however there is an information asymmetry. In addition to this financial and economic theory have assumed that all economic agents behave in a two way rational manner-the principles of expected utility theory and […]