Efficient Market Hypothesis

Not a Characteristic of an Efficient Market

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Which of the following choices is NOT a characteristic of an efficient market?

A. Market participants react quickly to news, and these reactions are quickly reflected in prices.

B. A large number of participants value securities independent of other parties.

C. Major news announcements are made on the second Friday of each month.

D. Expected returns implicitly include a risk component.

Click on the arrows to vote for the correct answer

A. B. C. D.

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