According to the efficient markets hypothesis, stock prices:
A) reflect all publicly available information about the stock market.
B) reflect all private company information that is known only to company insiders.
C) contain both public and private information that is helpful for some investors to outperform other investors.
D) contain no useful information.

Question

Quizplus · Accepted Answer

According to the efficient markets hypothesis, stock prices reflect all publicly available information about the stock market. This means that all information that is publicly available is already reflected in the stock prices, making it difficult for investors to consistently outperform the market.

According to the Efficient Markets Hypothesis, Stock Prices