Financial markets quickly eliminate unexploited profit opportunities through changes in
A)dividend payments.
B)tax laws.
C)asset prices.
D)monetary policy.

Question

Quizplus · Accepted Answer

Financial markets quickly adjust asset prices to reflect any unexploited profit opportunities. This is because investors would quickly buy or sell assets in response to changes in prices, effectively eliminating any potential profits that may exist. Dividend payments, tax laws, and monetary policy can also impact financial markets, but they may not necessarily lead to the same quick elimination of unexploited profit opportunities as changes in asset prices.

Financial Markets Quickly Eliminate Unexploited Profit Opportunities Through Changes in