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An efficient capital market is one in which: Security prices reflect all available information. Taxes are irrelevant. Brokerage commissions are zero. Securities always offer a

An efficient capital market is one in which:

  • Security prices reflect all available information.
  • Taxes are irrelevant.
  • Brokerage commissions are zero.
  • Securities always offer a positive NPV.
  • All investments earn the market rate of return.

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