Which of the Following Is One of the Characteristics of Perfect

Multiple Choice

Which of the following is one of the characteristics of perfect capital markets?

A) All investors hold the efficient portfolio of assets.
B) There are no taxes,but there may be transaction costs associated with security trading.
C) A firm's financing decisions may change the cash flows generated by its investments.
D) Investors and firms can trade the same set of securities at competitive market prices equal to the present value (PV) of their future cash flows.
E) No market participants engage in illegal behaviour.