A financial market is efficient if financial prices:
A) fully and correctly reflect all available information.
B) reflect information only available to traders.
C) adjust to any information.
D) allow for consistent short-term profits to be made.
E) yield returns for owners of capital.

Question

Quizplus · Accepted Answer

An efficient financial market means that financial prices fully and correctly reflect all available information, meaning that it is impossible to consistently earn excess returns, or profits, beyond the market average by using any public information available to the public.

A Financial Market Is Efficient If Financial Prices