Which one of the following statements is correct concerning market eﬃciency?
A) Real asset markets are more eﬃcient than ﬁnancial markets.
B) If a market is eﬃcient, arbitrage opportunities should be common.
C) In an eﬃcient market, some market participants will have an advantage over others.
D) A ﬁrm will generally receive a fair price when it sells shares of stock.
E) New information will gradually be reﬂected in a stock's price to avoid any sudden change in the price of the stock.

Question

Quizplus · Accepted Answer

In an efficient market, prices reflect all available information, meaning a firm will generally receive a fair price when it sells shares of stock.

Which One of the Following Statements Is Correct Concerning Market