A market is price efficient if:
A) It is riskless.
B) It offers investors reasonably priced services related to buying and selling
C) At all times prices fully reflect all available information that is relevant to the valuation of securities.
D) There are no transactions costs and taxes.
E) None of the above.

Question

Quizplus · Accepted Answer

A market is considered price efficient if at all times prices fully reflect all available information that is relevant to the valuation of securities. This concept is central to the Efficient Market Hypothesis, which posits that it is impossible to consistently achieve higher returns on investment by using any information that the market already knows, because prices already incorporate and reflect all relevant information.

A Market Is Price Efficient If