5Bus1157: Help you develop a critical understanding and appreciation of capital markets theory: Corporate Finance Report, KCL, UK

Learning Outcomes: Knowledge and Understanding tested in this assignment:

• The aim of the assessment is to: Help you develop a critical understanding and appreciation of capital markets theory and its impact on corporations, investors, and all other stakeholders
• The report will help you understand why market efficiency is important to provide market confidence.

Learning Outcomes: Skills and Attributes tested in this assignment:

• Describe and explain the corporate finance environment encompassing: the financial markets (market efficiency)
• Evaluation skills of large financial data.

It has been widely argued that efficiency in the capital markets is important as it performs a significant role in providing confidence to investors that they are getting access to complete and accurate information and market prices displayed are true and fair (Malkiel (2003), Timmermann & Granger (2004), Watson & Head (2016). It is important that investors can track returns on such markets. The efficient market hypothesis is concerned with establishing the prices of capital market securities and states that the prices of securities fully and fairly reflect all relevant available information (Fama 1970). Whether capital markets are indeed efficient or not has remained a topic of discussion among scholars and practitioners.