Respuesta :
A financial market is said to be information efficient if the pieces of securities reflect all information that is available to the public information efficient.
What is information efficiency in the financial market?
- How accurately and rapidly market prices reflect information and, as a result, the real value of an underlying asset. A market that is efficient will have perfect, full, immediate, and cost-free information transmission.
- In an effective market, asset prices accurately reflect all information that is available to market participants. As a result, it is impossible to profit ex-ante from trading assets in a market that functions effectively.
- Markets are efficient if they allocate resources to the most highly valued use and if rare and swiftly extinguished excess profit opportunities exist. Financial markets are typically efficient at allocating resources.
Learn more about the Financial market with the help of the given link:
https://brainly.com/question/16623249
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