单选题

If a securities market is efficient, it is most likely that:

A、 security prices would react only to the “unexpected” elements of information.
B、 investors would prefer active investment strategies to passive investment strategies.
C、 the time frame for price adjustment allows many traders to earn profits with little risk.

【正确答案】 A

【答案解析】

In an efficient market, prices should be expected to react only to the “unexpected” or “surprise” element of information releases. Investors process the unexpected information and revise expectations accordingly.