If the stock market is semistrong efficient,which of the following statements is correct?

Question

Quizplus · Accepted Answer

If the stock market is semistrong efficient, all publicly available information, such as financial statements and news articles, is already reflected in stock prices, meaning that investors cannot outperform the market by making trades based on that information. However, investors may be able to outperform the market if they have access to non-public information that has not yet been incorporated into stock prices. Therefore, statement B is the correct choice. Statements A, C, and D are incorrect because semistrong efficiency does not imply that all stocks should have the same expected returns or that stocks and bonds should have the same expected returns. The realized returns of different stocks may vary based on factors such as risk and market conditions.

If the Stock Market Is Semistrong Efficient,which of the Following