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The notion that actual capital markets, such as the nyse, are fairly priced is called the?

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Efficient Markets Hypothesis (EMH)

The notion that actual capital markets, such as the nyse, are fairly priced is called the Efficient Markets Hypothesis (EMH)

There are three market efficiency types which are allocative , operational and informational. Fairly priced stocks in capital market allow shareholders to notion through the process of buying and selling shares.

The share price reflects all the information that in with stock traded in capital markets fairly priced at a market. It also tells the asset value information of the underlying assets. Markets in which security prices fully reflect all relevant information available fundamental value of securities.

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