Question

In an inefficient market, it is more likely that fundamental value will be reflected in

Answer 1

An inefficient market, according to efficient market theory, is one in which an asset's market prices do not always accurately reflect its true value. Efficient market theory, or more accurately, the efficient market hypothesis(EMH) holds that in an efficient market, asset prices accurately reflect the asset's true value. In an efficient stock market, for example, all publicly available information about the stock is fully reflected in its price. In an inefficient market, in contrast, all the publicly available information is not reflected in the price, suggesting that bargains are available.

Answer 2

Answer:

Answer :

• $\longmapsto$ An inefficient market, according to efficient market theory, is one in which an asset's market prices do not always accurately reflect its true value. Efficient market theory, or more accurately, the efficient market hypothesis(EMH) holds that in an efficient market, asset prices accurately reflect the asset's true value. In an efficient stock market, for example, all publicly available information about the stock is fully reflected in its price. In an inefficient market, in contrast, all the publicly available information is not reflected in the price, suggesting that bargains are available.