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
AnswerB.
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.