The strong form of the EMH states that ________ must be reflected in the current stock price.
A) all security price and volume data
B) all publicly available information
C) all information, including inside information
D) all costless information

Question

Quizplus · Accepted Answer

The strong form of the EMH states that all information, including inside information, must be reflected in the current stock price. This means that even privileged information cannot be used to achieve higher returns than the market average, as it is already incorporated into the price. Therefore, choice C is the best option as it reflects the definition of the strong form of the EMH. Choices A, B, and D represent less stringent levels of the EMH.

The Strong Form of the EMH States That ________ Must