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Which of the following statements about Market Efficiency is most correct? Prices respond quickly and accurately to new information in efficient markets. If financial markets

Which of the following statements about Market Efficiency is most correct?

Prices respond quickly and accurately to new information in efficient markets.

If financial markets are efficient, then transactions are smooth and low-cost.

Each of the other items is correct.

In efficient markets prices are volatile.

Efficient markets will often have mis-priced securities

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