Financial Markets

You work as a researcher at an active equity fund. Your supervisor makes the following statement to you.

“Eugene Fama and Robert Shiller won the Nobel Prize in Economics in 2013. Their views on market efficiency and behavioural finance are, however, quite different.”

She assigns you the task of writing a critical essay evaluating the arguments of the two Nobel Laureates. Your essay should include any implications of your research for the future direction of the fund. You should utilise existing literature (scholarly journals) on market efficiency and behavioural finance as well as real world examples to support your conclusion.