Examveda
Examveda

If a market is inefficient, as new information is received about a security____________.

A. nothing will happen

B. the stock price will fall at first and then later rise

C. there will be a lag in the adjustment of the stock price

D. there will be negative demand for the stock

Answer: Option C

Solution(By Examveda Team)

If a market is inefficient, as new information is received about a security there will be a lag in the adjustment of the stock price.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process