Question

Explain the efficient market hypothesis.

Answer 1

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➡️The efficient-market hypothesis (EMH) is a theory of investment that says that the stock market always takes into account all information that is relevant about a company when pricing a stock. ✔️

➡️Therefore, all stocks are priced fairly at all times, and it is impossible to buy an undervalued stock or sell an overvalued one✅

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$\huge\bold\pink{@\:jat\:desi}$

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Answer 2

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• The efficient-market hypothesis (EMH) is a theory of investment that says that the stock market always takes into account all information that is relevant about a company when pricing a stock.

• Therefore, all stocks are priced fairly at all times, and it is impossible to buy an undervalued stock or sell an overvalued one.