Which of the following statements best describes the efficient markets hypothesis?

Question

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The Efficient Markets Hypothesis describes the idea that stock prices reflect all available information, including both public and private information. Semistrong-form efficiency specifically refers to the idea that prices reflect all public information, but not necessarily private information. Option A is incorrect because the hypothesis suggests the opposite, that stocks are always priced fairly. Option B describes weak-form efficiency, which is only one aspect of the hypothesis. Option C is incorrect because individual investors do not have to be rational for the hypothesis to be true, just that rational behavior is collectively reflected in market prices.

Which of the Following Statements Best Describes the Efficient Markets