Marketplace price efficiency

Definition:

The degree to which the prices of assets reflect the available marketplace information. Marketplace price efficiency is sometimes estimated as the difficulty faced by management of earning a greater return than passive management would, after adjusting for the risk associated with a strategy and the transactions costs associated with implementing a strategy.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Troubled assets

In context of the Troubled Asset Relief Program, the term 'troubled asset' is defined as: (A) Mortgages, mortgage backed securities, and instruments derived from these that were originated on or... Read More

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