The notion that actual capital markets,such as the NYSE,are fairly priced is called the:
A)efficient market Hypothesis (EMH).
B)law of one price (LOP).
C)open markets theorem (OMT).
D)laissez-faire axiom.
E)monopoly pricing theorem (MPT).

Question

Quizplus · Accepted Answer

The Efficient Market Hypothesis (EMH) suggests that financial markets are efficient and react quickly to any new information, resulting in fair prices for assets traded in those markets. This theory has further categories, including the weak form, semi-strong form, and strong form EMH. But the notion that actual capital markets, such as the NYSE, are fairly priced is mainly guided by the tenets of the EMH.

The Notion That Actual Capital Markets,such as the NYSE,are Fairly