Efficient capital markets are financial markets:
A)in which current market prices reflect available information.
B)in which current market prices reflect the present value of securities.
C)in which there is no excess profit from using available information.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

Efficient capital markets are characterized by the fact that market prices reflect available information and the present value of securities. In addition, the absence of excess profit from using available information is a key feature of efficient markets. Therefore, all of the given choices are correct.

Efficient Capital Markets Are Financial Markets