Fair pricing of securities is a notion of.
A) Purchasing power parity
B) Efficient market hypothesis
C) Central limit theorem
D) Irrationality
E) Separation theorem

Question

Quizplus · Accepted Answer

Fair pricing of securities is a concept related to the Efficient Market Hypothesis (EMH), which asserts that security prices fully reflect all available information at any given time. This means that it is impossible for investors to consistently achieve returns that beat the market average, as all relevant information is already reflected in the price of the security. Therefore, fair pricing of securities is a key tenet of the EMH.

Fair Pricing of Securities Is a Notion Of