Vidyalelo
Management · Q578

International Finance and Treasury

Graduate and Post Graduate · Management · question 578

Q578

Form of market efficiency which considers speed with which information at public level is impounded in prices of stock is classified as

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

Answer: Option A

Solution

Answer: Option A
Solution:
Form of market efficiency which considers speed with which information at public level is impounded in prices of stock is classified as semi-strong form market 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.