The efficient markets hypothesis is based on the ________________ theory.

Name: The efficient markets hypothesis is based on the ________________ theory.
Brand: Quizplus
Rating: 4.8 (59 reviews)

Question

Quizplus · Accepted Answer

The efficient markets hypothesis is based on the rational expectations theory, which assumes that investors use all available information to form their expectations about future market movements. This theory implies that stock prices always reflect all relevant information and are therefore always at their fair value.

The Efficient Markets Hypothesis Is Based on the ________________ Theory