If you believe in the ________ form of the EMH, you believe that stock prices reflect all publicly available information but not information that is available only to insiders.
A) semistrong
B) strong
C) weak
D) perfect

Question

Quizplus · Accepted Answer

The semistrong form of the Efficient Market Hypothesis (EMH) holds that stock prices reflect all publicly available information including financial reports, news articles, and other information that is available to the general public. However, it does not include information that is only available to insiders such as corporate executives or major shareholders. The two other forms of the EMH are the weak form, which includes historical price and volume data in addition to public information, and the strong form, which includes all public and private information.

If You Believe in the ________ Form of the EMH