If the market is __________ form efficient, it is also __________ form efficient.
A) strong; semiweak
B) weak; semistrong
C) semistrong; strong
D) weak; strong
E) semistrong; weak

Question

Quizplus · Accepted Answer

If the market is semistrong form efficient, it means that all publicly available information is already reflected in the stock prices. In this case, if it is also weak form efficient, it means that not only publicly available information but also historical price and volume data are already incorporated into the stock prices. Therefore, E is the correct answer as it implies that both types of information are already impounded in the stock prices.

If the Market Is __________ Form Efficient, It Is Also