Investors who presume that they have no insights about company value beyond the current market price and use financial statement data to assess firm-specific variables believe in the
A)market-to-market hypothesis.
B)efficient market hypothesis.
C)fundamental market hypothesis.
D)technical market hypothesis.

Question

Quizplus · Accepted Answer

The belief that current market prices reflect all available information, including firm-specific variables, is known as the efficient market hypothesis. Therefore, investors who believe this would not presume to have any insights beyond the current market price and would rely solely on financial statement data.

Investors Who Presume That They Have No Insights About Company