The efficient market hypothesis applies to
A) both the stock market and the foreign exchange market.
B) the stock market but not the foreign exchange market.
C) the foreign exchange market but not the stock market.
D) neither the stock market nor the foreign exchange market.

Question

Quizplus · Accepted Answer

The efficient market hypothesis (EMH) posits that all available information is already reflected in asset prices, including both the stock market and the foreign exchange market, making it impossible to consistently achieve higher returns than the overall market through traditional analysis or insider information.

The Efficient Market Hypothesis Applies to