Asked by zaimel moses on May 06, 2024
Verified
Market prices reacting suddenly to unexpected news announcements reinforces the argument that the financial markets are efficient.
Market Prices
The current value at which an asset or service can be bought or sold in an open and competitive market.
Unexpected News
Information that comes without warning, often having a potential impact on market prices and investor decisions.
Efficient
Describes an economy, market, or decision-making process that effectively allocates resources and inputs in a way that maximizes output or returns with minimal waste.
- Grasp the importance of market reactions to unexpected news as evidence of market efficiency.
Verified Answer
Learning Objectives
- Grasp the importance of market reactions to unexpected news as evidence of market efficiency.
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