The efficient market view holds that ________.
A) companies can search for new pieces of information to improve forecasting
B) forward exchange rates provide the least accurate forecasts of future exchange rates
C) companies must spend time and money collecting and examining information believed to affect future exchange rates
D) prices of financial instruments reflect all publicly available information at any given time

Question

Quizplus · Accepted Answer

The efficient market view suggests that prices of financial instruments reflect all publicly available information at any given time, making it difficult for investors to consistently outperform the market by using publicly available information. This view argues that it's not possible to beat the market consistently by attempting to forecast future events using historical or current information. Thus, option D is the correct statement. Options A, B, and C are incorrect because they do not align with the efficient market hypothesis.

The Efficient Market View Holds That ________