If the market is efficient with respect to accounting information,which of the following statements is true?
A) Accounting reports are useless to investors.
B) It is impossible to 'beat the market' using only accounting information that was released to the market 1 month ago.
C) Knowing the contents of an annual report before it is released to the market would not be useful to an investor.
D) Capital markets respond only to expected new information.

Question

Quizplus · Accepted Answer

In an efficient market, all available information is already reflected in stock prices, so using outdated accounting information won't provide an advantage.

If the Market Is Efficient with Respect to Accounting Information,which