Another way to state the efficient market condition is that in an efficient market,
A) unexploited profit opportunities will be quickly eliminated.
B) unexploited profit opportunities will never exist.
C) arbitrageurs guarantee that unexploited profit opportunities never exist.
D) both A and C of the above occur.

Question

Quizplus · Accepted Answer

In an efficient market, unexploited profit opportunities will be quickly eliminated as investors will quickly act upon any new information or market inefficiency, leading to prices adjusting quickly to reflect all available information. While arbitrageurs may contribute to this process, they do not guarantee that unexploited profit opportunities will never exist.

Another Way to State the Efficient Market Condition Is That