The notion that actual capital markets,such as the NYSE,are fairly priced is called the:
A) Efficient Markets Hypothesis (EMH).
B) Law of One Price.
C) Open Markets Theorem.
D) Laissez-Faire Axiom.
E) Monopoly Pricing Theorem.

Question

Quizplus · Accepted Answer

The Efficient Markets Hypothesis (EMH) theory states that capital markets are informationally efficient, meaning all investors have access to the same information and that information is reflected in asset prices. This suggests that actual capital markets, such as the NYSE, are fairly priced and that it is not possible to consistently achieve returns that beat the market without inside information or taking on more risk.

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