Session 13: Market Organization, Market Indices, and Market Efficiency
Reading 57: Market Efficiency
LOS b: Explain the factors affecting a market's efficiency.
Which of the following would be inconsistent with an efficient market?
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A) |
Stock prices adjust rapidly to new information. | |
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B) |
Price adjustments are biased. | |
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C) |
Price changes are independent. | |
Market efficiency assumes that investors adjust their estimates of security prices rapidly to reflect their unbiased interpretation of the new information. New information arrives randomly and independently. Therefore, price changes are independent. | 
发表于 2011-3-29 16:30
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