Which One of the Following Statements Best Defines the Efficient

question 12

Multiple Choice

Which one of the following statements best defines the efficient market hypothesis?

• A) Efficient markets limit competition.
• B) Security prices in efficient markets remain steady as new information becomes available.
• C) Mispriced securities are common in efficient markets.
• D) All securities in an efficient market are zero net present value investments.
• E) All securities provide the same positive rate of return when the market is efficient.