Final answer:
Stock analysts assume that a mispriced stock will eventually be corrected by the market based on the efficient market hypothesis.
Step-by-step explanation:
The assumption made by many stock analysts is that a mispriced stock will eventually be corrected by the market. In other words, if a stock is undervalued, it is expected to increase in price until it reaches its fair value. Conversely, if a stock is overvalued, it is expected to decrease in price. This assumption is based on the efficient market hypothesis, which suggests that stock prices reflect all available information and investors cannot consistently earn abnormal returns by exploiting mispricings.