The efficient market hypothesis holds that that financial markets price assets at their intrinsic worth, given all available information. Which of the following forms of the efficient market hypothesis defines all available information as all publicly available information including past stock prices?
A) Weak
B) Semi-weak
C) Semi-strong
D)Strong

Question

The efficient market hypothesis holds that that financial markets price assets at their intrinsic worth, given all available information. Which of the following forms of the efficient market hypothesis defines all available information as all publicly available information including past stock prices?
A) Weak
B) Semi-weak
C) Semi-strong 
D)Strong

Quizplus · Accepted Answer

The semi-strong form of the efficient market hypothesis posits that asset prices reflect all publicly available information, which includes past stock prices, financial statements, news releases, and other public disclosures.

The Efficient Market Hypothesis Holds That That Financial Markets Price