According to the efficient market hypothesis,the current price of a financial security
A) is the discounted net present value of future interest payments.
B) is determined by the highest successful bidder.
C) fully reflects all available relevant information.
D) is a result of none of the above.

Question

Quizplus · Accepted Answer

According to the efficient market hypothesis, the current price of a financial security fully reflects all available relevant information. This means that all past and current information, as well as future expectations, are already reflected in the security's price. Therefore, it is not possible for an investor to consistently earn returns that outperform the market by using this information.

According to the Efficient Market Hypothesis,the Current Price of a Financial