If the markets are efficient, the security price provides

Name: If the markets are efficient, the security price provides
Brand: Quizplus
Rating: 4.9 (42 reviews)

Question

Quizplus · Accepted Answer

In efficient markets, security prices fully reflect all available information, meaning that securities are priced in a way that the expected return is appropriate for the level of risk. This implies investors receive a normal return for the level of risk they take on, neither systematically higher nor lower than what the risk level would justify.

If the Markets Are Efficient, the Security Price Provides