Semi-strong-form efficiency can best be described as:

Question

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Semi-strong-form efficiency implies that all publicly available information is already incorporated into stock prices. Therefore, trading strategies based on such information cannot earn abnormal profits. However, investors may still be able to earn abnormal profits by trading on private information or by exploiting market anomalies. Option A refers to over-reaction, which implies the existence of market inefficiencies. Option B refers to weak-form efficiency, which only considers past stock prices and does not take into account any other information. Option D describes strong-form efficiency, which assumes that all information, public and private, is fully incorporated into stock prices.

Semi-Strong-Form Efficiency Can Best Be Described As