n an efficient market, the price of a security will: Multiple Choice   always rise immediately upon the release of new information with no further price adjustments related to that information.   react to new information over a two-day period after which time no further price adjustments related to that information will occur.   rise sharply when new information is first released and then decline to a new stable level by the following day.   react immediately to new information with no further price adjustments related to that information.

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.