Empirical evidence tends to support the weak and semi-strong forms of the efficient market hypothesis.

Question

Quizplus · Accepted Answer

Empirical evidence, such as studies on stock market returns and analysis of publicly available information, suggests that the stock prices reflect all available information and that it is difficult to consistently outperform the market. This supports the weak and semi-strong forms of the efficient market hypothesis. However, the strong form of the hypothesis, which suggests that no insider information can give an investor an advantage, is not supported by empirical evidence.

Empirical Evidence Tends to Support the Weak and Semi-Strong Forms