Which statement is true concerning alternative efficient market hypothesis?
A) The weak hypothesis encompasses the semi-strong hypothesis.
B) The weak hypothesis encompasses the strong hypothesis.
C) The semi-strong hypothesis encompasses the weak hypothesis.
D) The strong hypothesis relates only to public information.
E) The semi-strong hypothesis encompasses the strong hypothesis.

Question

Quizplus · Accepted Answer

The semi-strong hypothesis is a stronger version of the weak hypothesis, as it not only takes into account past market data (weak form) but also publicly available information (semi-strong form). The strong hypothesis is the strongest version and takes into account all information, including private information. Therefore, option A, B, D, and E are incorrect.

Which Statement Is True Concerning Alternative Efficient Market Hypothesis