The idea that all individuals or firms in a market earn the

The idea that all individuals or firms in a market earn the same returns in the long run is known as O subjective value. competitive advantage. the efficient market hypothesis. business model aggregation.

Solution

ANSWER: The efficient market hypothesis (EMH)

The EMH holds that financial markets have informational efficiency, which means information is available to all individual and it is instantly absorbed in the market prices of securities. Therefore, an individual cannot earn excess return than the average market returns on a risk adjusted basis in the long run.