In efficient market is one where
A) prices of stocks move up and down widely without apparent reason.
B) prices of stocks remain steady for long periods of time.
C) prices of stocks are unaffected by market news.
D) prices of stocks incorporate new information quickly and adjust appropriately to their true value.

Question

Quizplus · Accepted Answer

An efficient market is one where prices of stocks incorporate new information quickly and adjust appropriately to their true value. This means that there are no consistent patterns or opportunities for excess profits based on publicly available information, as the market reacts quickly and efficiently to any new information.

In Efficient Market Is One Where