An investor discovers that predictions about weather patterns published years in advance and found in the Farmer's Almanac are amazingly accurate.In fact, these predictions enable the investor
To predict the health of the farm economy and therefore certain security prices.This ﬁnding is a
Violation of the:
A)moderate form of the eﬃcient market hypothesis.
B)semistrong form of the eﬃcient market hypothesis.
C)weak form of the eﬃcient market hypothesis.
D)strong form of the eﬃcient market hypothesis.
E)None of the above.

Question

Quizplus · Accepted Answer

The semistrong form of the efficient market hypothesis posits that all publicly available information is already reflected in stock prices, including data like weather predictions. If an investor can use such publicly available information (like the Farmer's Almanac predictions) to outperform the market, it would violate the semistrong form of the efficient market hypothesis.

An Investor Discovers That Predictions About Weather Patterns Published Years