The semi-strong form of has been tested by measuring how rapidly security prices react various news items like:
I. earnings announcements II) dividend announcements
III. news of takeovers
IV. macroeconomic information
A) I and II only
B) I, II and III only
C) IV only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

The semi-strong form of the efficient market hypothesis states that all publicly available information, including both historical and current information, is immediately reflected in stock prices. Therefore, to test this form, various news items such as earnings announcements, dividend announcements, news of takeovers, and macroeconomic information need to be tested. Therefore, option D is the correct answer, as it includes all of the given news items.

The Semi-Strong Form of Has Been Tested by Measuring How