An analyst says that inside information would not have helped investors forecast the collapse of the stock market in 2008. This is true if markets satisfy

Question

Quizplus · Accepted Answer

In a market that satisfies strong efficiency, all information, including inside information, is already reflected in stock prices. Therefore, even with inside information, investors would not have been able to forecast the collapse of the stock market in 2008.

An Analyst Says That Inside Information Would Not Have Helped