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

Question

Quizplus · Accepted Answer

In an efficient market, prices reflect all available information, so profit opportunities from trading on such information are quickly exploited and eliminated, leading to prices that accurately reflect the value of securities almost instantaneously.

An Efficient Market Is a Market in Which