The more efficient the market,the faster prices react to new information.

Question

Quizplus · Accepted Answer

When a market is more efficient, it means that all available information is quickly incorporated into the prices of the assets being traded. As a result, the prices of these assets are constantly adjusting to reflect new information, making the market more dynamic and responsive to changes. This is why a more efficient market is associated with faster price reactions to new information.

The More Efficient the Market,the Faster Prices React to New