The speed with which the prices of stocks are adjusted to unexpected news related to interest rates is called __________?
Correct answer: D. market efficiency
- A. news efficiency
- B. adjusted efficiency
- C. expected efficiency
- D. market efficiency
Explanation
Market efficiency concerns how quickly and accurately security prices incorporate new information, including unexpected interest-rate news. The other terms are not standard classifications for this concept.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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