Which of the following statements does not characterize the efficient market hypothesis?
A)The best valuation for an individual security is its current market price
B)The price reflects all information known about the security
C)The price is the fair price for the asset
D)When new information is issued,it is quickly incorporated in the price of the shares
E)All of the above characterize the efficient market hypothesis

Question

Quizplus · Accepted Answer

All the statements (A through D) correctly characterize the Efficient Market Hypothesis (EMH), which posits that securities' prices reflect all available information, making it impossible to consistently achieve higher returns without taking on additional risk.

Which of the Following Statements Does Not Characterize the Efficient