Of the following efficient market hypotheses, researchers have stated that the ________ market is not efficient.

Question

Quizplus · Accepted Answer

The strong form of the efficient market hypothesis posits that all information, both public and private (or insider information), is already reflected in stock prices, meaning no one can consistently achieve higher returns. However, empirical evidence suggests that insiders can and do earn abnormal returns, indicating that markets are not efficient in the strong form.

Of the Following Efficient Market Hypotheses, Researchers Have Stated That