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13. Stock market efficiency Aa Aa E All the top analysts who follow Three Waters Co.s stock think that the firms stock pric

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Answer #1

The price of the stock determine by the risk return data are considered as the Intrinsic value of share. According to research all stocks are priced at Intrinsic value in the long run it might have fluctuations in short run but in long run market demand and supply biases are averaged out and Stock will price at it's Intrinsic value.

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Michelle is thinking that there is at least some Inefficiency in the market the reason is that in fully efficient market it is not possible to find undervalued stock because all shares are fairly priced but as in our case Michelle is able to find 4 undervalued stock market can't be efficient hence, there is some Inefficiency in to the market.

i hope my efforts will be fruitful to you....?

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