Question

Suppose a market is inefficient. As new information is received about an asset:

Answer 1

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An inefficient market, according to efficient market theory, is one in which an asset's market prices do not always accurately reflect its true value. ... The weak form asserts that an efficient marketreflects all historical publicly available information about the stock, including past returns.

Answer 2

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➡️ In economic terms, an inefficient market is a market in which securities prices are random and not influenced by past events. The idea is also referred to as weak form efficient-market hypothesis or the random walk theory (coined by Princeton economics professor Burton G. Malkiel in his 1973 book A Random Walk Down Wall Street).

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