Capital markets research assumes that markets are:

Question

Quizplus · Accepted Answer

Capital markets research typically assumes that markets are semi-strong-form efficient, meaning that all publicly available information is quickly and accurately incorporated into current stock prices. This assumption allows researchers to analyze market anomalies and identify areas of potential value for investors. While some argue that markets may also be weak-form efficient (incorporating past prices and trading patterns) or strong-form efficient (incorporating all public and private information), the semi-strong-form assumption is generally considered the most pragmatic and widely-accepted.

Capital Markets Research Assumes That Markets Are