While most investors' valuations are incorrect, the market's value is, given the information available at that moment, is always _____, though in a circular way only.

Question

Quizplus · Accepted Answer

The market's value is considered correct given the information available at that moment because it reflects the collective judgment of all participants, even though this judgment might be based on a circular reasoning process where prices influence perceptions and perceptions influence prices.

While Most Investors' Valuations Are Incorrect, the Market's Value Is