Vidyalelo
Commerce · Q845

Financial Management

Graduate and Post Graduate · Commerce · question 845

Q845

An efficient market hypothesis states all public information which is reflected in current market prices is classified as

A.
weak form efficiency
B.
strong form efficiency
C.
market efficiency
D.
semi strong efficiency
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
An efficient market hypothesis states all public information which is reflected in current market prices is classified as semi strong efficiency. The semi-strong form efficiency is a type of efficient market hypothesis (EMH), which holds that security prices adjust quickly to newly available information, thus eliminating the use of fundamental or technical analysis to achieving a higher return.