Which of the following statements best describes market efficiency?
A) Semistrong-form market efficiency implies that as soon as any public or private information comes into being it is incorporated into stock prices.
B) Weak-form market efficiency implies that recent trends in stock prices are of no use in predicting future stock prices.
C) Market efficiency implies that all stocks should have the same expected return.
D) According to strong-form market efficiency, insiders would find it possible to consistently earn abnormal returns in the stock market even if they have superior knowledge about the company.
Correct Answer:
Verified
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