The best definition of efficient capital markets is: Multiple Choice The price over adjusts to the new information; it "overshoots" the new price and subsequently corrects. Statistical measure of maximum loss used by banks and other financial Institutions to manage risk exposures. The price instantaneously adjusts to and fully reflects new information; there is no tendency for subsequent increases and decreases. Situation in which security prices reflect available information, The price partially adjusts to the new information; 10 days elapse before the price completely reflects the new information