In an efficient capital market,the role of accounting information is to ________.
A) help investors find underpriced securities
B) help investors find overpriced securities
C) help investors find low risk securities
D) help investors identify the different degrees of risk among different securities

Question

Quizplus · Accepted Answer

In an efficient capital market, all available information is already reflected in the prices of securities. Therefore, accounting information helps investors by providing them with insights into the financial health and prospects of companies, which in turn assists in identifying the different degrees of risk associated with investing in those companies' securities.

In an Efficient Capital Market,the Role of Accounting Information Is