The implicit assumption of valuation

And how it applies to coins

Here’s a question from the first test in Professor Damodaran’s valuation class:

When you value assets, you are implicitly assuming that

The options are:

a. The market is always right

b. The market is always wrong

c. The market is sometimes wrong but that it corrects itself eventually

d. The market is sometimes wrong, but does not correct itself eventually

e. N…