The semistrong form of the efficient market hypothesis states that:
A) all information is reflected in the price of securities.
B) security prices reflect all publicly available information.
C) future prices are predictable.
D) Both all information is reflected in the price of securities; and future prices are predictable.
E) None of these.

Question

Quizplus · Accepted Answer

The semistrong form of the efficient market hypothesis states that security prices reflect all publicly available information. It does not assert that all information is reflected in securities prices or that future prices are predictable.

The Semistrong Form of the Efficient Market Hypothesis States That