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:
A)moderate form of the efficient market hypothesis.
B)semistrong form of the efficient market hypothesis.
C)strong form of the efficient market hypothesis.
D)weak form of the efficient market hypothesis.
E)None of the above.

Question

Quizplus · Accepted Answer

The semistrong form of the efficient market hypothesis states that all publicly available information is already reflected in stock prices. If the investor can use publicly available information from the Farmer's Almanac to predict security prices, it indicates a violation of this form.

An Investor Discovers That Predictions About Weather Patterns Published Years