According to the efficient market hypothesis, rational people will not recognize that asset prices are rising too quickly.

Question

Quizplus · Accepted Answer

The Efficient Market Hypothesis (EMH) suggests that all available information is already reflected in asset prices, meaning that prices always reflect the true value of an asset. However, it does not imply that rational people cannot recognize when asset prices are rising too quickly; rather, it suggests that such recognition is based on new information that is already reflected in the current prices.

According to the Efficient Market Hypothesis, Rational People Will Not