517. In an efficient market , the price of a security will A. Rise sharply when new information is first released and then decline to a new stable level by the following day B. React immediately to any new information that affects the value of the issuing firm C. React to new information over a two day period after which time no further price adjustments related to that information will occur D. Always rise immediately upon the release of new information with no further price adjustments related to that information E. Be slow to react for the first few hours after new information is released allowing time for that information to be reviewed and analyzed 517. In an efficient market , the price of a security will A. Rise sharply when new information is first released and then decline to a new stable level by the following day B. React immediately to any new information that affects the value of the issuing firm C. React to new information over a two day period after which time no further price adjustments related to that information will occur D. Always rise immediately upon the release of new information with no further price adjustments related to that information E. Be slow to react for the first few hours after new information is released allowing time for that information to be reviewed and analyzed A. Rise sharply when new information is first released and then decline to a new stable level by the following day B. React immediately to any new information that affects the value of the issuing firm C. React to new information over a two day period after which time no further price adjustments related to that information will occur D. Always rise immediately upon the release of new information with no further price adjustments related to that information E. Be slow to react for the first few hours after new information is released allowing time for that information to be reviewed and analyzed Solution A.) Rise sharply when new information is first released and then decline to a new stable level by the following day . This is because the efficient market incorporates and reflects any relevant information that has an impact either directly or indirectly on the price of a security .It also reflects the sentiments of the investors who react according to the information released thus rising the prices sharply when the information is released but tends to absorb and stabilize the market by the following day by bringing it to a new stable level..