According to the semistrong-form efficient market hypothesis, which of the following types of information are fully reflected in stock prices?
A) rates of return, trading volume, and news about the economy
B) dividend and earnings announcements
C) rates of return, trading volume, and block trades
D) earnings announcements and rates of return
E) All of these are correct.

Question

Quizplus · Accepted Answer

The semistrong-form efficient market hypothesis posits that all publicly available information, including historical data, rates of return, trading volume, block trades, and all public announcements (such as news about the economy, dividend, and earnings announcements), is fully reflected in stock prices. Therefore, all the options listed are types of information that would be reflected in stock prices according to this hypothesis.

According to the Semistrong-Form Efficient Market Hypothesis, Which of the Following