Question
If the market changes and stock prices instantly and fully reflect new information, which time path does such a change exhibit?
Multiple choice question.
A delayed reaction
An overreaction and correction
An efficient market reaction
Multiple choice question.
A delayed reaction
An overreaction and correction
An efficient market reaction
Answers
GPT-4o mini
The correct answer is: **An efficient market reaction**.
In an efficient market, stock prices adjust quickly and accurately to new information, reflecting that information fully and instantaneously.
In an efficient market, stock prices adjust quickly and accurately to new information, reflecting that information fully and instantaneously.