Consider the efficient market hypothesis as it relates to the stock market. If the weak form of efficiency holds, then which of these statements is true?
A) Insider trading may happen, but this is not reflected in stock prices.
B) Stock prices reflect all market information and most relevant private information.
C) Stock prices reflect all market information but cannot capture all private information.
D) Insider trading is necessarily an anomaly.
Correct Answer:
Verified
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