In an efficient capital market,the market prices of securities ________.
A) fully reflect all the information available to the public
B) fully reflect all the information available to insiders
C) reflect some of the information available to the public
D) reflect most of the information available to the public

Question

Quizplus · Accepted Answer

In an efficient capital market, the market prices of securities fully reflect all the information available to the public. This means that any new information or news that becomes available is immediately reflected in the prices of securities. As a result, it is difficult or impossible to consistently outperform the market by finding mispricings or undervalued assets. Efficient markets ensure that prices always reflect all available information, making it very difficult for investors to earn excess returns by trading securities based on public information.

In an Efficient Capital Market,the Market Prices of Securities ________