By Dirk Hackbarth and Bin Zhou ( September 11, 2018, 12:56 PM EDT) -- In part one of this two-part article, we argue that courts rely more on market price in appraising fair value of stocks that are actively traded on a U.S. stock exchange and where there is no controlling shareholder. In the case of Aruba, expert evidence of market efficiency was not presented by either party to the court. The Aruba court instead considered a number of factors routinely used in 10(b)-5 securities cases to conclude that Aruba's stock price is a possible proxy for fair value. The court then suggests that "[p]erhaps future appraisal litigants will retain experts on market efficiency … and maybe future appraisal decisions will consider subtler aspects of the efficient capital markets hypothesis."[1] Here, we propose several tests to empirically assess the reliability of market price....