Available evidence does not support the strong form of the efficient market hypothesis.

Question

Quizplus · Accepted Answer

The strong form of the efficient market hypothesis states that all information, both public and private, is reflected in stock prices. However, research has shown that some private information, such as insider trading, can lead to abnormal profits, contradicting the strong form of the hypothesis. Therefore, available evidence does not support the strong form of the efficient market hypothesis.

Available Evidence Does Not Support the Strong Form of the Efficient