Vidyalelo
Commerce · Q171

Financial Management

Graduate and Post Graduate · Commerce · question 171

Q171

If a market is inefficient, as new information is received about a security____________.

A.
nothing will happen
B.
the stock price will fall at first and then later rise
C.
there will be a lag in the adjustment of the stock price
Answer
D.
there will be negative demand for the stock

Answer: Option C

Solution

Answer: Option C
Solution:
If a market is inefficient, as new information is received about a security there will be a lag in the adjustment of the stock price.