TRUE TRUE Equity as very good barometer of value despite the rise in Intangible Assets. CAPM describes the relationship between the excess return of a stock and the excess return of the market relative to the 'risk-free rate'. Because it is impossible to forecast market inefficiencies, there is little reason for investors to employ quantitative valuation techniques. The Efficient Market Hypothesis asserts that assets are valued at fair value reflecting all available information. An expensive investment is priced near it's fair value. Financial analysis is conducted for a variety of reasons but always performed to support a decision