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2 weeks ago
Which of the following is the best statement of the efficient markets hypothesis?

▸ Investors with information that a stock had a positive net present value (NPV) will buy it, while investors with information that a stock had a negative net present value (NPV) will sell it.

▸ Investor's decisions are dependent on complete current information of a firm's cash flows and accurate predictions of future cash flows.

▸ A share's price is the aggregate of the information of many investors.

▸ Competition between investors works to make the net present value (NPV) of all trading opportunities zero.
Textbook 
Fundamentals of Corporate Finance
Edition: 2nd
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wrote...
2 weeks ago
Competition between investors works to make the net present value (NPV) of all trading opportunities zero.
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