Market prices can be efficiently priced if
A)brokerage commissions are zero.
B)a number of interested traders use the publicly available information.
C)securities always offer a positive rate of return to investors.
D)the prices are guaranteed by the U.S.Securities and Exchange Commission.
E)taxes are irrelevant.

Question

Quizplus · Accepted Answer

Efficient pricing of market prices depends on the availability and use of publicly available information by interested traders. Commissions, taxes, and SEC guarantees may affect prices indirectly but are not directly related to efficient pricing. The positive rate of return of securities is also not directly related to efficient pricing.

Market Prices Can Be Efficiently Priced If