Which of the Following Is a Characteristic of an Efficient

question 78

Multiple Choice

Which of the following is a characteristic of an efficient market?

• A) Small number of individuals
• B) Opportunities exist for investors to profit from publicly available information.
• C) Security prices reflect fair value of the firm.
• D) Immediate response occurs for new public information.

---

Definitions:

Rifting

The process of the Earth's crust being pulled apart, leading to the formation of rift valleys and, eventually, new ocean basins.

Hurricane Sandy

A tropical cyclone that hit the Caribbean and United States in October 2012, causing widespread destruction and flooding, particularly in New York and New Jersey.

Atlantic Coast

The eastern boundary of the North and South American continents, stretching from the Arctic Ocean in the north to the southern tip of South America, characterized by diverse ecosystems and geological features.

Tornado Alley

Tornado Alley is a colloquial term for a region in the central United States particularly prone to frequent and intense tornadoes, primarily due to its unique geographical and climatic conditions.