According to the efficient markets hypothesis,the current price of a financial security
A) is the discounted net present value of future interest payments.
B) is determined by the highest successful bidder.
C) fully reflects all available relevant information.
D) is a result of none of the above.

Question

Quizplus · Accepted Answer

According to the efficient markets hypothesis, the current price of a financial security fully reflects all available relevant information. Therefore, it is not based solely on discounted net present value of future interest payments, nor is it determined only by the highest successful bidder.

According to the Efficient Markets Hypothesis,the Current Price of a Financial