If the market is efficient only in regard to past prices, the market is said to be __________ efficient.
A) mild-form
B) weak-form
C) historical-form
D) semi-strong form
E) strong-form

Question

Quizplus · Accepted Answer

If the market is efficient only in regard to past prices, it means that new information such as news, research reports, and insider information is not reflected in the current prices. This type of efficiency is known as weak-form efficiency. In semi-strong form efficiency, current prices fully reflect all publicly available information, and in strong-form efficiency, prices fully reflect all information, including insider information.

If the Market Is Efficient Only in Regard to Past