All of the following conditions must occur for a market to be considered efficient except:
A) Information is costless and widely available to market participants at approximately the same time.
B) Information is generated in a specific fashion such that announcements are basically dependent on each other.
C) There are a large number of rational, profit-maximizing investors who actively participate in the market.
D) Investors react quickly and fully to the new information, causing stock prices to adjust accordingly.

Question

Quizplus · Accepted Answer

For a market to be considered efficient, information does not need to be generated in a specific fashion such that announcements are basically dependent on each other. Efficient Market Hypothesis (EMH) primarily concerns the availability and the rapid incorporation of information into stock prices, rather than the pattern or dependency of information generation.

All of the Following Conditions Must Occur for a Market