Rational Expectations Involve the Assumption That

Rational expectations involve the assumption that

A) market participants make use only of information on the past performance of an asset in determining what they believe its price should be.
B) market participants rarely change their minds about the correct price of an asset.
C) financial markets are good at increasing liquidity, but poor at transmitting information.
D) market participants makes use of all available information.

Correct Answer:

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