Explain why a characteristic of an efficient market is that investments in that market have zero NPVs?

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Corporate Finance

ISBN: 978-0077861759

11th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Question Posted: Jun 22, 2017 10:03 AM

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Explain why a characteristic of an efficient market is that investments in that market have zero NPVs?

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On average the only return that is earned is the required return x investors buy ...View the full answer

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