Which of the following is not part of the theory of informat

Which of the following is not part of the theory of informational efficiency and the efficient markets hypothesis?

Solution

A market is considered as efficient when all stock related information is publicly available to all investor and invest make decision rationally for make investment decision. In efficient market, required rate of return is equal to expected rate of return and market value of stock is equal to book value of stock. in efficient market all information sare publically avaiable and transaction cost is low.

In efficient market both parties, Buyer and seller act rationally while making decision about investment.

So, Option (B) is not part of the theory of informational efficiency and the efficient markets hypothesis.