Individuals that continually monitor the financial markets seeking mispriced securities:
A)tend to make substantial profits on a daily basis.
B)are never able to find a security that is temporarily mispriced.
C)tend to make the markets more efficient.
D)are always quite successful using only well-known public information as their basis of evaluation.
E)are always quite successful using only historical price information as their basis of evaluation.

Question

Quizplus · Accepted Answer

Continual monitoring of financial markets and seeking mispriced securities tends to make the markets more efficient over time. When mispricings are discovered, they are quickly corrected, ensuring that market prices are more accurate reflections of a security's true value. While this approach may still result in profits for investors, the focus is on contributing to market efficiency rather than solely making profits from temporary pricing discrepancies.

Individuals That Continually Monitor the Financial Markets Seeking Mispriced Securities