In an efficient market-the price of a security

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Reference no: EM13767704

In an efficient market, the price of a security will:

a. rise sharply when new information is first released and then decline to a new stable level by the following day.

b. always rise immediately upon the release of new information with no further price adjustments related to that information.

c. react immediately to new information with no further price adjustments related to that information.

d. react to new information over a two-day period after which time no further price adjustments related to that information will occur.

e. be slow to react for the first few hours after new information is released allowing time for that information to be reviewed and analyzed.

Reference no: EM13767704

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