Asked by netta blinchevsky on Jun 02, 2024
Verified
An efficient market is a market
A) that deals in unlimited resources.
B) in which long-term profits are guaranteed.
C) in which profit opportunities are eliminated almost instantaneously.
D) in which there are no opportunity costs.
Efficient Market
A market theory that suggests all available information is already reflected in stock prices, hence investments cannot consistently outperform the market.
Profit Opportunities
Situations in which it is possible for businesses or individuals to make a financial gain.
- Determine components that enhance market efficiency.
Verified Answer
MA
Málfríður Anna EiríksdóttirJun 08, 2024
Final Answer :
C
Explanation :
In an efficient market, prices reflect all available information, so any potential profit opportunities from exploiting information asymmetries are quickly eliminated as the market adjusts prices to new information.
Learning Objectives
- Determine components that enhance market efficiency.
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