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According to the efficient market hypothesis, prices of securities in financial markets fully reflect which of the following?Group of answer choicesAll available informationOnly past informationLimited informationPrivate information

Question

According to the efficient market hypothesis, prices of securities in financial markets fully reflect which of the following?Group of answer choicesAll available informationOnly past informationLimited informationPrivate information

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Solution

According to the Efficient Market Hypothesis (EMH), prices of securities in financial markets fully reflect all available information. This includes past, present, and even future information that can be predicted from available information. The EMH suggests that it's impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. Therefore, the correct answer is "All available information".

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Similar Questions

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