Which form of market efficiency would most likely offer the greatest profit potential to an outstanding professional stock analyst?
A) Weak
B) Semiweak
C) Semistrong
D) Strong
E) Perfect

Question

Quizplus · Accepted Answer

Weak form efficiency suggests that past trading information is already reflected in stock prices, but it does not account for all available information. Therefore, an outstanding professional stock analyst could potentially exploit other forms of information (such as unpublished financial reports or industry trends) to achieve greater profits, which is less feasible in more efficient markets where such information is already priced in.

Which Form of Market Efficiency Would Most Likely Offer the Greatest