Markets Are Efficient When Prices Adjust Rapidly to New Information

question 11

True/False

Markets are efficient when prices adjust rapidly to new information, continuous markets exist, and large dollar trades can be absorbed without large price movements.

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Definitions:

Demand Per Day

The average quantity of a product or service that consumers buy or are expected to buy in a single day.

Mathematical Approaches

Techniques or methods derived from mathematics used to solve problems and make decisions in various fields.

Optimizing

The process of making something as effective, perfect, or functional as possible within given constraints.

Heuristic

This term refers to a practical approach to problem-solving, learning, or discovery that employs a practical method not guaranteed to be optimal but sufficient for reaching an immediate goal.