An efficient market is a market
A) in which everyone always gets what they want.
B) in which profit opportunities are eliminated almost instantaneously.
C) in which profits are always very high and persistent.
D) in which opportunity costs are zero.

Question

Quizplus · Accepted Answer

An efficient market is one in which profit opportunities are eliminated almost instantaneously due to the availability and speed of information flow. This means that prices quickly adjust to reflect all available information, making it difficult for investors to consistently earn abnormal profits. The other choices do not accurately represent the characteristics of an efficient market.

An Efficient Market Is a Market