Which One of the Following Statements Best Defines the Efficient

question 84

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)Profits are removed as a market incentive when markets become efficient.

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