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Christian Paulo Pichay
on Nov 07, 2024

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The notion that actual capital markets, such as the TSX, 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.

Efficient Markets Hypothesis

The theory that all available information is already reflected in securities prices, implying that stocks always trade at their fair value.

Actual Capital Markets

Refers to live, operational markets where securities, debts, and equities are traded and capital is allocated in real time.

  • Learn the foundations of the Efficient Markets Hypothesis (EMH) and how they pertain to the pricing practices in capital markets.
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Yanelli Rodriguez-DiazNov 10, 2024
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