Attempts Average /5 3. Market efficiency Financial theorists have identified two different types of efficiency in financial markets. The first, Informational efficiency, contributes to the existence and strength of the other, economic efficiency The degree of informational efficiency exhibited by a market refers to the types of information incorporated into the prices observed in the market and the speed with which prices adjust when new relevant information is released into the market, Markets are said to exhibit one of three levels of informational efficiency, whak-form efficiency, semistrong-form efficiency, or strong-form efficiency At any level, a market's informational efficiency is likely to be stronger when there is a relevant security and market information in search of the most profitable investments. number of market participants receiving and analyzing Grade It Now Save & Continue Continue without saving Attempts Average /5 3. Market efficiency Financial theorists have identified two different types of efficiency in financial markets. The first, Informational efficiency, contributes to the existence and strength of the other, economic efficiency The degree of informational efficiency exhibited by a market refers to the types of information incorporated into the prices observed in the market and the speed with which prices adjust when new relevant information is released into the market, Markets are said to exhibit one of three levels of informational efficiency, whak-form efficiency, semistrong-form efficiency, or strong-form efficiency At any level, a market's informational efficiency is likely to be stronger when there is a relevant security and market information in search of the most profitable investments. number of market participants receiving and analyzing Grade It Now Save & Continue Continue without saving