Which of the following statements is incorrect?
A)It is possible for some markets to be more efficient than others.
B)It is possible for markets to be efficient with respect to some information and inefficient with respect to other information.
C)The market is likely to be more efficient with respect to companies where there is greater analyst following.
D)The market is totally efficient with respect to companies providing regular dividends to investors.

Question

Quizplus · Accepted Answer

The statement that "the market is totally efficient with respect to companies providing regular dividends to investors" is incorrect. Although regular dividend payments are often a sign of a stable and profitable company, the market may not be completely efficient in incorporating all information about the company into its stock price, including dividend payments.

Which of the Following Statements Is Incorrect