A semistrong form efficient market is distinct from a weak form efficient market by:
A)incorporating only random movements in the price.
B)incorporating all publicly available information in the price.
C)incorporating inside information in the price.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

A semistrong form efficient market takes into account all publicly available information in the price, whereas a weak form efficient market only incorporates past price movements and a strong form efficient market incorporates both publicly available information and inside information in the price. Therefore, choice B is the correct answer.

A Semistrong Form Efficient Market Is Distinct from a Weak