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Which of the following is TRUE regarding the relation between insider trading and market efficiency? a) insider trading does not affect market efficiency as stock

Which of the following is TRUE regarding the relation between insider trading and market efficiency?

a) insider trading does not affect market efficiency as stock prices will not reflect the insiders' information

b) insider trading causes stock prices to react more quickly to information, leading to a more efficient market

c) insider trading will make the market less efficient as investors will be discouraged from participating in the stock market

d) none of the above

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