A semistrong efficient market is distinct from a weak form efficient market in historical prices by:
A)incorporating only random movements in the price.
B)incorporating inside information in the price.
C)incorporating all publicly available information in the price.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

A semistrong efficient market incorporates all publicly available information in the price, including historical prices. It goes beyond weak form efficiency, which only takes into account past prices and random movements. Inside information is taken into account in a strong form efficient market, which is even more advanced than semistrong efficiency.

A Semistrong Efficient Market Is Distinct from a Weak Form