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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › "Perfect market"
If the shares of both companies traded in a perfect market what should a rational investor do and what should happen to the share price of both companies?
It would depend what level of risk the investor wished to have, because the level of return would be higher or lower depending on the riskiness of the company.
Were it a perfect market then nothing would happen to the share prices because they would already be correctly valued.
