Identify the form of market efficiency where the information about past trends in investment prices is of no use in selecting winning investments, but the investors can still make use of privately held information to earn abnormal return.

Question

Quizplus · Accepted Answer

This describes semi-strong form efficiency, where publicly available information (such as past trends in investment prices) is already reflected in the current price, but private information can still be used to earn abnormal returns. Strong form efficiency would mean that even private information cannot lead to abnormal returns, while weak form efficiency would allow past price trends to be used for investment selection. Economic efficiency and real-time efficiency are not forms of market efficiency.

Identify the Form of Market Efficiency Where the Information About