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
AnswerAnswer: 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.