In an efficient market, differences between intrinsic value and market value should be small.

Name: In an efficient market, differences between intrinsic value and market value should be small.
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Question

Quizplus · Accepted Answer

In an efficient market, all available information is already reflected in stock prices, so the market value of a stock should closely align with its intrinsic value, leading to small differences between the two.

In an Efficient Market, Differences Between Intrinsic Value and Market