An efficient stock market means that:
A)it is difficult to outperform the market, since stock prices convey all relevant public information about a company.(True
Answer )Correct
B)traders with inside information cannot even outperform market averages.
C)new information is slowly reflected in stock prices.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

An efficient stock market is one in which stock prices accurately represent all available public information about a company. This means that it is difficult for investors or traders to outperform the market by using public information alone, as all relevant information is already reflected in the stock prices. The other choices are not necessarily true indicators of an efficient stock market.

An Efficient Stock Market Means That