Security Markets Are Efficient EXCEPT for When Which of the Following

question 13

Multiple Choice

Security markets are efficient EXCEPT for when which of the following exists?

• A) Security prices follow the leading indicators such as the DJIA very closely.
• B) The markets absorb large dollar amounts of stock without destabilizing the price.
• C) Prices adjust rapidly to new information.
• D) There is a continuous market where each successive trade is made at a price close to the previous trade.

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