According to the semi-strong form of the efficient markets hypothesis ________.
A)share prices do not rapidly adjust to new information
B)future changes in share prices cannot be predicted from any information that is publicly available
C)corporate insiders should have no better investment performance than other investors even if allowed to trade freely
D)arbitrage between futures and cash markets should not produce extraordinary profits

Question

Quizplus · Accepted Answer

According to the semi-strong form of the efficient markets hypothesis, all publicly available information is already reflected in the current stock price, therefore, it is not possible to predict future changes in share prices from this information alone.

According to the Semi-Strong Form of the Efficient Markets Hypothesis