The correct answer is: C. there will be a lag in the adjustment of the stock price.
An inefficient market is one in which the current price of a security does not reflect all available information. This can happen for a variety of reasons, such as if there is asymmetric information (one party has more information than another), if there are transaction costs, or if there are behavioral biases among investors.
When new information is received about a security, it will take time for the market to adjust to this new information. This is because investors need time to process the information, and they may also need time to sell or buy shares of the security. As a result, there will be a lag in the adjustment of the stock price.
Option A is incorrect because it is possible for the stock price to change even in
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