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Management · Q731

Financial Management

Graduate and Post Graduate · Management · question 731

Q731

A theory which states that assets are traded at price equal to its intrinsic value is classified as

A.
efficient money hypothesis
B.
efficient market hypothesis
Answer
C.
inefficient market hypothesis
D.
inefficient money hypothesis

Answer: Option B

Solution

Answer: Option B
Solution:
A theory which states that assets are traded at price equal to its intrinsic value is classified as efficient market hypothesis. The Efficient Markets Hypothesis is an investment theory primarily derived from concepts attributed to Eugene Fama's research work as detailed in his 1970.