Asked by Jacob Cadavid on Jun 04, 2024
Verified
If a market has semi-strong efficiency, then all insider information is included in market prices.
Semi-Strong Efficiency
A form of market efficiency that asserts all public information is reflected in stock prices, making it impossible to gain abnormal returns.
Insider Information
Non-public information about a publicly-traded company that can provide a financial advantage in the stock market if acted upon.
Market Prices
The current prices at which goods, services, or financial instruments are bought and sold in a market.
- Acquire an understanding of the foundational principles of the Efficient Market Hypothesis (EMH) and its forms (weak, semi-strong, strong).
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Learning Objectives
- Acquire an understanding of the foundational principles of the Efficient Market Hypothesis (EMH) and its forms (weak, semi-strong, strong).
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