Efficient Market Hypothesis (EMH) An Efficient Market is One Where Information is Widely Available and Used Optimally. Good Deals'will not be available. Buying securities is a zero NPV investment NPV PV of Cash Flows -Price of security 44 Efficient Market Hypothesis (EMH) Efficient Market Hypothesis (EMH) ƒ An Efficient Market is One Where Information is Widely Available and Used Optimally. Ä‘Good Deals’ will not be available. ÄBuying securities is a zero NPV investment • NPV = PV of Cash Flows – Price of security