Financial Decisions and Informational Efficiency Efficient:"1.Performing or functioning in the best possible and least wasteful manner;" Various definitions.For example: Allocative -most valuable projects financed. Operational -minimize costs of providing services. Informational -information is not 'wasted' 33 Financial Decisions and Financial Decisions and Informational Efficiency Informational Efficiency ƒ Efficient: “1. Performing or functioning in the best possible and least wasteful manner;” – Various definitions. For example: •Allocative – most valuable projects financed. •Operational – minimize costs of providing services. •Informational – information is not ‘wasted’