You are the chief financial officer of Davidson Industries. On multiple occasions, you have engaged in insider trading but have never been able to earn any abnormal returns. Which form of market efficiency most likely exists given your situation?
A)mild form
B)weak form
C)historical form
D)semistrong form
E)strong form

Question

Quizplus · Accepted Answer

The strong form of market efficiency suggests that all information, including insider information, is already reflected in stock prices, preventing any abnormal returns from insider trading.

You Are the Chief Financial Officer of Davidson Industries