Asked by tushig amarjargal on Jun 30, 2024
Verified
The semi-strong form of market efficiency is best described as a market where _____ reflected in the current security prices.
A) all historical market prices are
B) all information of every kind is
C) all public information is
D) all insider information is
E) all information, publicly known or not, is
Semi-Strong Form
The semi-strong form of market efficiency hypothesizes that stock prices incorporate all publicly available information, suggesting that investors cannot earn excess returns through fundamental analysis.
Market Efficiency
A financial theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.
- Understand the concepts of market efficiency, including semi-strong form and efficient capital markets.
Verified Answer
LS
Latifat SulaimonJul 02, 2024
Final Answer :
C
Explanation :
The semi-strong form of market efficiency posits that all public information is already incorporated into current security prices, meaning that investors cannot achieve higher returns through trading on public information alone.
Learning Objectives
- Understand the concepts of market efficiency, including semi-strong form and efficient capital markets.