An efficient market is one in which the market uses all available information. In a perfect market,

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An efficient market is one in which the market uses all available information. In a perfect market, market pressures by arbitrageurs will make market efficiency come true, so a perfect market should be efficient.

However, an efficient market need not be perfect. For example, stocks could be priced fairly even when there are taxes.

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Corporate Finance An Introduction

ISBN: 9780321277992

1st Edition

Authors: Ivo Welch

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Question Posted: Oct 25, 2024 10:07 AM

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An efficient market is one in which the market uses all available information. In a perfect market,

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Corporate Finance An Introduction

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