米什金货币金融学(商学院版)第7章课件(1).pptVIP

Chapter 7 The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis 7.1 Computing the Price of Common Stock Basic Principle of Finance Value of Investment = Present Value of Future Cash Flows Stronger Version of the EMH Add the condition that an efficient market is one in which prices reflect the true fundamental value of the securities. Thus, in an efficient market, all prices are always correct and reflect market fundamentals. Implications: 1. One investment is as good as any other. 2. A security’s price reflects all available information about the intrinsic