When investors are not capable of making superior investment decisions on a consistent basis based on past prices or public or private information,the market is said to be:
A) weak-form efficient.
B) semi strong-form efficient.
C) strong-form efficient.
D) fundamentally efficient.

Question

Quizplus · Accepted Answer

When investors are incapable of making superior investment decisions based on any past prices, public or private information, or insider information, the market is considered strong-form efficient. This implies that the market has fully assimilated all information into security prices, even private information. This makes it impossible to make consistent returns by trading on insider information.

When Investors Are Not Capable of Making Superior Investment Decisions