Markets in general are considered efficient when

Question

Quizplus · Accepted Answer

All of the options mentioned in the question are true attributes of efficient markets. An efficient market is one where prices adjust quickly and accurately to new information, the market is continuous, and large trades do not destabilize prices. When all of these conditions hold, it is difficult for investors to consistently outperform the market through skill or luck alone. Therefore, efficient markets are often associated with passive investing strategies such as index funds.

Markets in General Are Considered Efficient When