Answer:
True. A stock's market price would equal it's intrinsic value if all the investors had all the information about the stock.
Explanation:
Intrinsic value is different from market value in the sense intrinsic value is derived by subtracting all assets from all liabilities of a company.
Intrinsic value is equal to market value +/- investor's sentiments
Market price of a share is usually derived by dividing total market capitalization by no of shares/stock outstanding. It refers to the value at which a company's stock is currently trading in the stock market.
As efficient market theory holds, investor decisions are affected by the information about a stock which gets circulated. This wipes out any arbitrage possibilities.
A stock's market price would equal it's intrinsic value if all investors had all the information that is available about the stock.
Thus, the given statement is true.
