The reason why investors may think that the markets operate efficiently is becau

Question

The reason why investors may think that the markets operate efficiently is because (Select the best choice below) O A Very intelligent, wel informed, and educated people in key positions work to keep prices correct at all times O B. Most investors react slowing to the release of information allowing the markets to buffer and correct for misinformation ° C. If a security is mispriced investors will avoid it until the price corrects. O D. Many investors are looking for the same thing, a good deal. When one is found they will either buy or sell it until the good deal disappears thus driving it back to its correct price

Explanation / Answer

The answer is D.

As the investor buys/Sells investments it keeps on making the market more efficient.

So, it operates efficiently.

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