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The efficient market hypothesis suggests that: Multiple Choice while individuals can be irrational, collectively they will not. because individuals are rational, collectively they are also rational. irrationality
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The efficient market hypothesis suggests that: Multiple Choice while individuals can be irrational, collectively they will not. because individuals are rational, collectively they are also rational. irrationality must a part of every economic model. asset price bubbles are efficient.

User Roman Patutin
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Answer: asset price bubbles are efficient.

Step-by-step explanation:

The efficient market hypothesis simply states that all information are reflected by the share prices.

The efficient market hypothesis suggests that asset price bubbles are efficient. We should note they economic bubbles take place when the price of assets increases more then their true economic value but late falls.

User Nithish Thomas
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