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Speed with which prices of stocks are adjusted to unexpected news related to interest rates is called
Answer & Solution
Correct Answer:
Option
D
Speed with which prices of stocks are adjusted to unexpected news related to interest rates is called market efficiency. Market efficiency refers to the degree to which market prices reflect all available, relevant information. If markets are efficient, then all information is already incorporated into prices, and so there is no way to "beat" the market because there are no undervalued or overvalued securities available.
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