Which of the following statements is true for an efficient market?
A) The expected return in the market is 0.
B) Information arrives randomly and independently.
C) Mutual fund managers outperform the aggregate market.
D) Stock prices respond gradually to information as it spreads across the country.

Question

Quizplus · Accepted Answer

In an efficient market, information arrives randomly and independently, meaning that new information is unpredictable and not influenced by past information. This ensures that stock prices reflect all available information at any given time.

Which of the Following Statements Is True for an Efficient