Consider the following equally likely project outcomes: Profit X Y Pessimistic prediction $ 0 $500 Expected outcome $ 500 $500 Optimistic prediction $1000 $500 Investors will prefer project X because it potentially offers a higher profit Investors will reject both projects because the profit is too low. Investors will prefer project Y because the expected return is the same as for project X but th Since Projects X and Y have the same expected outcomes of $500. Investors will view them as Which of the following is a characteristic of an efficient market? Small number of individuals Opportunities exist for investors to profit from publicly available information. Security prices reflect fair value of the firm. Immediate response occurs for new public information