Which of the following will lead to excess profits in a semistrong-form efficient market?
I.private financial information
II.historical price trends
III.financial analysts reports
IV.unreleased merger plans
A) I only
B) I and IV only
C) II and III only
D) I, II, and III only
E) I, III, and IV only

Question

Quizplus · Accepted Answer

In a semistrong-form efficient market, all publicly available information is already reflected in stock prices. Therefore, only private information, such as unreleased merger plans, can lead to excess profits.

Which of the Following Will Lead to Excess Profits in a Semistrong-Form