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The Efficient Market Hypothesis Holds That That Financial Markets Price

question 3

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The efficient market hypothesis holds that that financial markets price assets at their intrinsic worth, given all available information. Which of the following forms of the efficient market hypothesis defines all available information as knowledge of past security prices?


Definitions:

Spin-Off

The distribution of shares in a subsidiary to existing parent company shareholders.

Subsidiary

A company that is completely or partly owned and partly or entirely controlled by another company, known as the parent company.

Shareholders

Individuals or entities that own shares in a corporation, thus holding a portion of the corporation's ownership.

Poison Pill

A defensive strategy used by companies to deter hostile takeovers by making the company less attractive to the potential acquirer.

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