In order to test the efficient-market hypothesis in the semi-strong form, researchers have used (the):
A) Estimation of the serial correlation (autocorrelation) for securities and markets
B) Measurement of the performance of mutual fund managers over the years
C) Measurement of how rapidly security prices adjust to different news items
D) All of the above

Question

Quizplus · Accepted Answer

The semi-strong form of the efficient-market hypothesis suggests that security prices adjust rapidly to publicly available new information. Therefore, testing this form involves measuring how quickly prices respond to news.

In Order to Test the Efficient-Market Hypothesis in the Semi-Strong