The strong form of the efficient market hypothesis contends that
A)a select few institutional investors can earn abnormal profits.
B)abnormal profits are randomly distributed.
C)no one can consistently earn a profit.
D)no one can consistently earn abnormal profits.

Question

Quizplus · Accepted Answer

The strong form of the efficient market hypothesis states that all information, both public and private, is reflected in stock prices and therefore no one can consistently earn abnormal profits. This rejects the idea that a select few institutional investors can consistently outperform the market.

The Strong Form of the Efficient Market Hypothesis Contends That