Foreign exchange markets are generally found to be at least ____ efficient, which implies that all public information is considered within the markets.
A) weak-form
B) semistrong-form
C) purchasing power purity form
D) None of these are correct.

Question

Quizplus · Accepted Answer

Foreign exchange markets are generally found to be at least semistrong-form efficient, which implies that all public information including historical prices, fundamental analysis, and financial statements are considered within the markets. Weak-form efficiency only considers historical prices, while purchasing power parity form efficiency only relates to the relative prices of two currencies.

Foreign Exchange Markets Are Generally Found to Be at Least