Re:How Can Yahoo Be Worth Less Than Zero?
by pyrrhotech on Friday April 18, 2014 @09:11AM
(#7609002)
Value is what the market is willing to pay for it--for anything, not just companies. The EMH says that that value is always discounted perfectly on a risk-adjusted basis of all current knowledge about the company. Therefore if a company exceeds its risk adjusted expected performance in the future, it wouldn't be possible to predict beforehand.
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