A semistrong form efficient market is distinct from a weak form efficient market in historical prices by:

Question

Quizplus · Accepted Answer

A semistrong form efficient market is one in which all publicly available information is already reflected in the current market price. This is different from a weak form efficient market, in which historical prices and other market data can be used to predict future prices, and a strong form efficient market, which incorporates all information, including insider information. Choice A is incorrect because it suggests that only random movements in price are incorporated, which is not the case in any efficient market. Choice D is incorrect because insider information is not a feature of a semistrong form efficient market, and choice E is incorrect because at least one of the statements in the answer choices is true.

A Semistrong Form Efficient Market Is Distinct from a Weak