If the Market Processes New Information Efficiently,the Reaction of Market

question 20

Multiple Choice

If the market processes new information efficiently,the reaction of market prices to new information will be:

• A)unbiased.
• B)instantaneous.
• C)instantaneous and unbiased.
• D)fair.

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Definitions:

Process Reliability

The likelihood that a process will perform without failure under specified conditions for a given period of time.

Efficiency

The ability to achieve a goal or perform a task with the least waste of resources, including time, energy, and materials.

Accidents

Unplanned events that result in injury, damage, or harm in some way, often prompting investigations into ways to prevent them in the future.

Competitive Strategy

An approach a business takes to differentiate itself from its competitors, focusing on strengths to provide better value to customers.