Markets tend to be efficient when
A)arbitrage is unlawful.
B)amateurs dominate the market.
C)all investors are required to be rational.
D)professional arbitrage exceeds amateur speculation.
E)prices adjust to new information slowly.

Question

Quizplus · Accepted Answer

Professional arbitrageurs are typically better equipped than amateurs to identify and exploit pricing inefficiencies in the market, which helps to improve market efficiency by reducing mispricings.

Markets Tend to Be Efficient When