Market prices continually ﬂuctuating reinforces the argument that the ﬁnancial markets are eﬃcient.

Name: Market prices continually ﬂuctuating reinforces the argument that the ﬁnancial markets are eﬃcient.
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Question

Quizplus · Accepted Answer

Efficient markets theory states that market prices always reflect all available information, and fluctuations are caused by new information entering the market. Therefore, the fact that prices continuously fluctuate supports the argument that the financial markets are efficient.

Market Prices Continually ﬂUctuating Reinforces the Argument That the ﬁNancial