Examveda
Examveda

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

C. inefficient market hypothesis

D. inefficient money hypothesis

Answer: Option B

Solution(By Examveda Team)

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.

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