In an efficient market: A.Prices are constant over the short-term. B.The risk premium on all securities will diminish to zero. C.All investors are guaranteed a positive return. D.Prices react quickly and correctly to new information. E.Risks for investment are low.

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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In an efficient market:

A.Prices are constant over the short-term.

B.The risk premium on all securities will diminish to zero.

C.All investors are guaranteed a positive return.

D.Prices react quickly and correctly to new information.

E.Risks for investment are low.

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