Strong form efficiency asserts that insiders could not profit from private inside information.

Name: Strong form efficiency asserts that insiders could not profit from private inside information.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Strong form efficiency, a concept from the Efficient Market Hypothesis, posits that all information, both public and private (inside information), is already reflected in stock prices, meaning that no one, including insiders, can consistently achieve higher returns.

Strong Form Efficiency Asserts That Insiders Could Not Profit from Private