CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

In an efficient market, security prices ______

A. reflect all past, present, and future information.
B. react only to unexpected information.
C. are equal to their intrinsic value.
Correct Answer: B

A: Security prices reflect all past and present information.
C: They should reflect, but are not necessarily exactly equal to, their intrinsic value.

User Contributed Comments 1

User Comment
CFAJ they react to expected information also, when they information becomes expected
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