If the market is efficient,stock prices should be expected to react only to new information.

Name: If the market is efficient,stock prices should be expected to react only to new information.
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Question

Quizplus · Accepted Answer

The efficient market hypothesis states that all available information is already incorporated into stock prices. Therefore, prices should only react to new information or unexpected events that were not previously known or anticipated.

If the Market Is Efficient,stock Prices Should Be Expected to React