An efficient market is a market
A) that deals in unlimited resources.
B) in which long-term profits are guaranteed.
C) in which profit opportunities are eliminated almost instantaneously.
D) in which there are no opportunity costs.

Question

Quizplus · Accepted Answer

In an efficient market, prices reflect all available information, so any potential profit opportunities from exploiting information asymmetries are quickly eliminated as the market adjusts prices to new information.

An Efficient Market Is a Market