Which one of the following statements is correct concerning market efficiency? a
ID: 2646297 • Letter: W
Question
Which one of the following statements is correct concerning market efficiency?
a A firm will generally receive a fair price when it sells shares of stock in an efficient market. b Real asset markets are more efficient than financial markets. c New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock in an efficient market. d If a market is efficient, arbitrage opportunities should be common. e In an efficient market, some market participants will have an advantage over others.Explanation / Answer
New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock in an efficient market.
stock prices always reflects to the information floods into the market.
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