Which One of the Following Statements Is Correct Concerning Market

question 16

Multiple Choice

Which one of the following statements is correct concerning market efficiency?

• A)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.
• B)In an efficient market,some market participants will have an advantage over others.
• C)If a market is efficient,arbitrage opportunities should be common.
• D)Real asset markets are more efficient than financial markets.
• E)A firm will generally receive a fair price when it sells shares of stock in an efficient market.

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Definitions:

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