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P Flag question A market in which prices are close to intrinsic values and stocks seem to be in equilibrium is called Efficie
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The answer is true, because the efficient market is one where prices reflect all available, relevant information. In other words, markets can be said to be efficient if all available information are incorporated into prices. So in an efficient market, stocks tend to trade at a price equal to its intrinsic value, and therefore we cannot find undervalued or overvalued stocks.    

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