The efficient markets hypothesis suggests that if an unexploited profit opportunity arises in an efficient market
A)it will tend to go unnoticed for some time.
B)it will be quickly eliminated.
C)financial analysts are your best source of this information.
D)all profits will be eliminated through taxation.

Question

Quizplus · Accepted Answer

The efficient markets hypothesis proposes that all publicly available information is already reflected in the current market price of a security, and therefore any unexploited profit opportunity will be quickly identified and eliminated by market participants.

The Efficient Markets Hypothesis Suggests That If an Unexploited Profit