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Basic Question 5 of 13
In an efficient market, security prices ______
B. react only to unexpected information.
C. are equal to their intrinsic value.
A. reflect all past, present, and future information.
B. react only to unexpected information.
C. are equal to their intrinsic value.
User Contributed Comments 1
| User | Comment |
|---|---|
| CFAJ | they react to expected information also, when they information becomes expected |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
describe market efficiency and related concepts, including their importance to investment practitioners
contrast market value and intrinsic value
explain factors that affect a market's efficiency
CFA® 2025 Level I Curriculum, Volume 3, Module 3.