In an efficient market,__________.
A)security prices react quickly to new information
B)security prices are seldom far above or below their justified levels
C)security analysis will not enable investors to realize superior returns consistently
D)one cannot make money
E)A,B,and C

Question

Quizplus · Accepted Answer

In an efficient market, security prices react quickly to new information, meaning that prices are unlikely to stay far above or below their justified levels for an extended period. This suggests that security analysis will not enable investors to consistently achieve superior returns. Thus, all options A, B, and C are correct in an efficient market. Therefore, the best choice is E.

In an Efficient Market,__________