2008 was an example in which known information was not reflected in the price. There was a huge amount of mortgage-backed securities that were backed by non-per

2008 was an example in which known information was not reflected in the price. There was a huge amount of mortgage-backed securities that were backed by non-performing loans. Anyone who did due diligence could have figured this out, and some did. But most people didn't do due diligence, so extremely important, publicly available information was not factored into the price of MBSs.