Which of the following assumptions imply capital markets will be efficient?
A) A large number of independent profit-maximizing participants analyze securities.
B) New information regarding securities comes to the market in a random fashion.
C) Investors adjust security prices rapidly to reflect the effect of new information.
D) Both b and c only.
E) All of the above are assumptions that imply a market will be efficient.
Correct Answer:
Verified
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