Solved

Which Statement Regarding Market Efficiency Is True

Question 7

Multiple Choice

Which statement regarding market efficiency is true?


A) Semistrong-form market efficiency implies that as soon as any public or private information comes into being it is incorporated into stock prices.
B) Weak-form market efficiency implies that recent trends in stock prices are of no use in predicting future stock prices.
C) Market efficiency implies that all stocks should have the same expected return.
D) According to strong-form market efficiency, insiders would find it possible to consistently earn abnormal returns in the stock market even if they have superior knowledge about the company.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents