According to theory,studying historical prices in order to identify mispriced stocks will not work in markets that are _____ efficient. I. weak form
II) semistrong form
III) strong form
A) I only
B) II only
C) I and II only
D) II and III only
E) I, II, and III

Question

Quizplus · Accepted Answer

In all forms of market efficiency (weak, semistrong, and strong), historical prices cannot be used to identify mispriced stocks. Weak form efficiency states that past prices are reflected in current prices, semistrong form includes all public information, and strong form includes all information, public and private.

According to Theory,studying Historical Prices in Order to Identify Mispriced