Expert answer:In the perfectly efficient market, the expected returns are are always equal to the required returns, and hence there are no undervalued or overvalued assets. If we strongly believe this, then what is the typical steps/investment philosophy for investment decisions?Must include terms such as market efficiency, asset allocation, return risk tradeoff, holding period, diversification, market portfolio, risk-free assets.Direction: Limit answer to a full one page with single space
