If the stock market was perfectly, efficient, which of the following would be true?
A) Stock prices would never change
B) Stock prices would only change on expected news
C) Stock prices would only change on unexpected news
D) Stock prices would change on expected and unexpected news

Respuesta :

Answer: C) Stock prices would only change on unexpected news

Explanation:

If the stock market was perfectly efficient, it would mean that all known information is already reflected in the stock price. This includes both historical and current data.

For the stock price to change therefore, there would have to be unexpected news that are not already accounted for in the price and so will force it to react positively or negatively.