Which of the Following Is NOT an Underlying Assumption of the Existence

question 29

Multiple Choice

Which of the following is NOT an underlying assumption of the existence of an efficient market?

• A)A large number of rational, profit-maximizing investors exist.
• B)Information is costless and widely available to market participants.
• C)Information arrives at predetermined times.
• D)Investors react quickly and fully to new information.

---

Definitions:

No Economical Access To Buyers

A situation where sellers cannot reach potential customers in a cost-effective manner, often due to high distribution costs or market barriers.

Advertising

The act of promoting products, services, or ideas through various media channels to inform, persuade, or remind the target audience.

Competitors' Actions

This term refers to the strategies, tactics, and moves made by companies or entities competing within the same market or industry.

Precise Protocol

A detailed plan or set of rules that dictates the execution of a specific process, experiment, or procedure, usually to ensure consistency and accuracy.