Efficient capital markets

Question

Quizplus · Accepted Answer

Efficient capital markets reflect all available information in security prices and adjust quickly and accurately to the arrival of new information. This means that it is difficult to consistently outperform the market by using publicly available information, as the market will already have incorporated that information into prices. While there may be some debate about the degree of efficiency in real-world markets, the concept of efficient markets remains an important benchmark for academic research and investment strategy.

Efficient Capital Markets