Question

If a market is truly efficient, security prices reflect

answer options:

all public and private information on the company

all publicly available information on the company

no public or private information on the company

i’ll private information available on the company

Answer 1

Answer:

all public and private information on the company

Explanation:

A market is said to be fully efficient if all the relevant information (both private and public) about the prizes of securities are displayed or made known.

Therefore, if a market is truly efficient, security prices reflect all public and private information on the company.