Which of the following is a characteristic of an efficient market? - 4566

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Which of the following is a characteristic of an efficient market?

a.Small number of individuals

b.Opportunities exist for investors to profit from publicly available information.

c.Security prices reflect fair value of the firm.

d.Immediate response occurs for new public information.

The efficient market hypothesis assumes that share prices are reflective of all forms of information. Under the hypothesis, there are three forms of market efficiency: weak form, semi-strong form, and strong form.

 
Solution Description

Which of the following is a characteristic of an efficient market?

a.