Question

What is the basic premise of the Efficient Market Theory (EMT)?

a.

Limited access to market information

b.

Delayed dissemination of market information

c.

Investors acting on relevant information as soon as it becomes available

d.

Inefficient allocation of resources

Answer: (c).Investors acting on relevant information as soon as it becomes available Explanation:The basic premise of Efficient Market Theory is that all market participants receive and act on all relevant information as soon as it becomes available in the stock market.

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Q. What is the basic premise of the Efficient Market Theory (EMT)?

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