Markets in which prices reflect value are said to be ________ .
A) allocationally efficient
B) free of agency conflicts
C) informationally efficient
D) operationally efficient
E) prone to arbitrage

Question

Quizplus · Accepted Answer

Informationally efficient markets are those in which prices quickly and accurately reflect all available information, making it difficult for investors to consistently achieve abnormal returns through trading. This implies that prices are reflecting true values and not distorted by any information asymmetry or manipulation.

Markets in Which Prices Reflect Value Are Said to Be