A market in which the price equals the true economic value
A)is risk-free
B)has high expected returns
C)is organized
D)is efficient
E)all of the above

Question

Quizplus · Accepted Answer

A market in which the price equals the true economic value is efficient, meaning that all available information is reflected in the price. Therefore, it is not possible to consistently outperform the market through superior knowledge or analysis, making it difficult to generate high expected returns. While it may be organized, it is not necessarily risk-free as there may still be market and business risks involved.

A Market in Which the Price Equals the True Economic