If the market processes new information efficiently,the reaction of market prices to new information will be:

Question

Quizplus · Accepted Answer

If the market processes new information efficiently, it means that all market participants have access to the same information and can act accordingly. In such a scenario, the reaction of market prices to new information would be both instantaneous and unbiased. This would mean that prices would adjust to reflect all available information immediately, and the adjustments would be fair and consistent with the new information. Therefore, option C is the correct answer.

If the Market Processes New Information Efficiently,the Reaction of Market