An investor discovers that predictions about weather patterns published years in advance and found in the Farmer's Almanac are amazingly accurate. In fact, these predictions enable the investor to predict the health of the farm economy and therefore certain security prices. This finding is a violation of the:

Question

Quizplus · Accepted Answer

The semi-strong form of the efficient market hypothesis posits that all publicly available information is already reflected in stock prices, including data like weather predictions. If an investor can use such public information to predict and profit from stock price movements, it suggests a violation of the semi-strong form.

An Investor Discovers That Predictions About Weather Patterns Published Years