Which statement describes a serious challenge to the efficient markets hypothesis?

Question

Quizplus · Accepted Answer

The efficient markets hypothesis suggests that stock prices reflect all available information about the fundamentals of the company, meaning that fluctuations in stock prices can be fully explained by changes in the company's financial performance or other news that affects its value. However, if stock prices fluctuate more than can be explained by news about fundamentals, or if investors behave irrationally in ways that impact stock prices, this challenges the idea that markets are truly efficient. Choice D includes both of these challenges to the efficient markets hypothesis.

Which Statement Describes a Serious Challenge to the Efficient Markets