All of the following conditions must occur for a market to be considered efficient except:
A)Information is costless and widely available to market participants at approximately the same time.
B)Information is generated in a specific fashion such that announcements are basically dependent on each other.
C)There are a large number of rational,profit-maximizing investors who actively participate in the market.
D)Investors react quickly and fully to the new information,causing stock prices to adjust accordingly.

Question

Quizplus · Accepted Answer

Information being generated in a specific fashion such that announcements are dependent on each other does not necessarily impact the efficiency of a market. The other conditions listed are seen as necessary for a market to be efficient.

All of the Following Conditions Must Occur for a Market