A market for securities in which information is quickly and widely disseminated, thereby allowing each security's price to adjust rapidly in an unbiased manner to new information so that the price reflects investment value is known as a(an) ____ efficient market.
A) externally
B) allocationally.
C) externally,
D) globally.

Question

Quizplus · Accepted Answer

An efficient market is one where prices fully reflect all available information. In this context, "externally" efficient refers to the market's ability to quickly and accurately incorporate external information into security prices.

A Market for Securities in Which Information Is Quickly and Widely