Strong-form efficient markets theory proclaims that ________.
A)one can chart historical stock prices to predict future stock prices such that you can identify mispriced stocks and routinely outperform the market
B)one can exploit publicly available news or financial statement information to routinely outperform the market
C)current prices reflect the price and volume history of the stock,all publicly available information,and all private information
D)current prices reflect the price and volume history of the stock,all publicly available information,but no private information

Question

Quizplus · Accepted Answer

Strong-form efficient markets theory states that current prices reflect all information, both public and private, that is relevant to the asset's value. This includes the price and volume history of the stock, as well as all publicly available information and any insider information that might be available. This suggests that it is not possible to consistently outperform the market based on either historical price charts or publicly available news or financial statement information.

Strong-Form Efficient Markets Theory Proclaims That ________