Available evidence does not support the strong form of the efficient markets hypothesis.

Name: Available evidence does not support the strong form of the efficient markets hypothesis.
Brand: Quizplus
Rating: 4.9 (56 reviews)

Question

Quizplus · Accepted Answer

The strong form of the efficient markets hypothesis suggests that all information, public and private, is reflected in stock prices. However, empirical evidence shows that insiders can earn abnormal returns, indicating that not all private information is reflected in stock prices.

Available Evidence Does Not Support the Strong Form of the Efficient