Answer:
The answer is A) all of the above because In finance, an efficient market is one in which
- prices adjust quickly and accurately to new information
- prices are the best allocators of capital in the macro economy
- prices are assumed to be correct.
Step-by-step explanation:
Market efficiency refers to how well current prices reflect all available, relevant information about the actual value of the underlying assets.
A truly efficient market eliminates the possibility of beating the market, because any information available to any trader is already incorporated into the market price.
If all available, relevant information is incorporated into current prices, then any information relevant information that can be gleaned from past prices is already incorporated into current prices. Therefore future price changes can only be the result of new information becoming available.