When some individuals and institutions have access to information concerning the true value and risk of financial assets, which others do not, it is referred to as the efficient market hypothesis.

Question

Quizplus · Accepted Answer

The efficient market hypothesis posits that all available information is already reflected in the prices of financial assets, meaning that no one can consistently achieve higher returns without assuming additional risk. The scenario described refers to information asymmetry, not the efficient market hypothesis.

When Some Individuals and Institutions Have Access to Information Concerning