The Japanese stock market bubble peaked at 54,000 in 1989. Two and a half years later it had fallen to 24,600. What was the percentage decline? (Negative answer should be indicated with a minus sign. Round your answer to 2 decima places.) Market decline %

The Japanese stock market bubble peaked at 54,000 in 1989. Two and a half years later it had fallen to 24,600. What was the percentage decline? (Negative answer should be indicated with a minus sign. Round your answer to 2 decima places.) Market decline %

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter10: Measuring Exposure To Exchange Rate Fluctuations

Section: Chapter Questions

Problem 41QA

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

The Japanese stock market bubble peaked at 54,000 in 1989. Two and a half years later it had fallen to 24,600.
What was the percentage decline? (Negative answer should be indicated with a minus sign. Round your answer to 2 decima
places.)
Market decline
%

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