If a market is inefficient,as new information is received about a security:
A)nothing will happen.
B)the stock price will fall at first and then later rise.
C)there will be a lag in the adjustment of the stock price
D)there will be negative demand for the stock.

Question

Quizplus · Accepted Answer

In an inefficient market, there is a lag in the adjustment of the stock price. This means that it takes time for the price to reflect the new information, resulting in a lag. Therefore, choice C is the best choice.

If a Market Is Inefficient,as New Information Is Received About