If foreign exchange markets are strong-form efficient, then all relevant public and private information is already reflected in today's exchange rates.

Question

Quizplus · Accepted Answer

Strong-form efficiency assumes that all information, including private information, is already incorporated into current market prices. Therefore, if foreign exchange markets are strong-form efficient, then all relevant public and private information is already reflected in today's exchange rates.

If Foreign Exchange Markets Are Strong-Form Efficient, Then All Relevant