Which of the following refers to the market condition where there are enough securities to efficiently allocate risk?
A)Operational efficiency
B)Allocational efficiency
C)Informational efficiency
D)Liquidity efficiency

Question

Quizplus · Accepted Answer

Allocational efficiency refers to the market condition where there are enough securities to efficiently allocate risk. This means that investors are able to purchase a variety of securities that suit their risk preferences, allowing them to diversify their portfolios and manage their risk exposure. In an allocationally efficient market, there are enough securities available to satisfy the demand of all investors, and prices reflect the true value of the securities based on their risk and return characteristics.

Which of the Following Refers to the Market Condition Where