Financial markets fluctuate daily because they:
A)are inefficient.
B)are continually reacting to new information.
C)slowly react to new information.
D)only reflect historical information.
E)offer tremendous arbitrage opportunities.

Question

Quizplus · Accepted Answer

Financial markets are continually reacting to new information, such as economic data releases, corporate earnings reports, geopolitical events, and more. This information is quickly incorporated into the prices of securities, leading to daily fluctuations in the market. Therefore, option B is the best choice. Options A, C, D, and E are incorrect because they do not accurately describe the reasons for daily market fluctuations.

Financial Markets Fluctuate Daily Because They