Which of the following is an underlying assumption of the existence of an efficient market?
A) A few number of rational, profit-maximizing investors exist.
B) Information is costly and not widely available to market participants.
C) Information arrives at predetermined times.
D) Investors don't react quickly and fully to new information.
E) None of the above

Question

Quizplus · Accepted Answer

Efficient market hypothesis assumes that a large number of rational, profit-maximizing investors exist, information is freely available and arrives randomly, and investors react quickly and fully to new information.

Which of the Following Is an Underlying Assumption of the Existence