All of the Following Conditions Must Occur for a Market

question 55

Multiple Choice

All of the following conditions must occur for a market to be considered efficient except:

• A)Information is costless and widely available to market participants at approximately the same time.
• B)Information is generated in a specific fashion such that announcements are basically dependent on each other.
• C)There are a large number of rational,profit-maximizing investors who actively participate in the market.
• D)Investors react quickly and fully to the new information,causing stock prices to adjust accordingly.

---

Definitions:

Beginning Investors

Individuals who are new to investing, typically requiring guidance and learning about investment strategies and market principles.

Average Real Rate Of Return

The annualized rate of return on an investment, adjusted for inflation, reflecting the actual buying power of the returns.

Diverse Set

A collection of items characterized by variety and difference, often used in the context of demographic or conceptual diversity.

Lengthy Time Period

A substantial span of time that extends over years or even decades, often used in economic, historical, or geological contexts.