Explain what is meant by informational asymmetries

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4. Explain what is meant by informational asymmetries. What problems can these asymmetries create for participants in the money and capital markets?
5. What does it mean to say a financial asset is “temporarily overpriced” or “temporarily under-priced”? How can such a situation happen? Why is such overpricing or under-pricing likely to be only temporary? 3-4
Chapter 03 - The Financial Information Marketplace

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