Phenomenon of Style Investing & its Impacts on Market Efficiency (Coursework Sample)

Phenomenon of Style Investing and its Impacts on Market Efficiency
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The phenomenon of style investing involves the act of learning various assets that exist in the economy. Similarly, the different assets that are invested in the economy are classified based on the risk factor in them. For instance, the most uncertain, the medium and least uncertain. Besides, various assumptions are drawn from the classifications done via style investing (Wahal et al., 2013). For instance, the news of one style affects the prices of the other assets in the market. The classifications done mainly involve long-term and short-term investments which are further used in the risk determination and assessments. A significant number of investors have applied this style of investing as it mainly determines a huge part of the value of there investment portfolio. Also, through this style of investing, the investors in the market can be able to classify assets as a liquid like shares and stocks or illiquid like real estate and ventured capital. In essence, the value of the stock plays a vital role in the aspect of style investing in the market.