A test which investigates whether publicly available financial accounting information can be used to generate abnormal returns is a direct test of:
A) weak form market efficiency.
B) semi-strong form market efficiency.
C) strong form market efficiency.
D) mean-variance market efficiency.

Question

Quizplus · Accepted Answer

The semi-strong form of market efficiency asserts that all publicly available information is already reflected in stock prices, so testing if such information can generate abnormal returns directly tests this form of efficiency.

A Test Which Investigates Whether Publicly Available Financial Accounting Information