A semistrong form eﬃcient market is distinct from a weak form eﬃcient market in historical prices by:
A)incorporating only random movements in the price.
B)incorporating all publicly available information in the price.
C)incorporating inside information in the price.
D)incorporating all privately available information in the price.
E)None of the above.

Question

Quizplus · Accepted Answer

A semistrong form efficient market incorporates all publicly available information, not just historical prices. This includes news releases, financial statements, and other information that is widely known within the market. The weak form efficient market only incorporates historical prices, while a strong form efficient market incorporates all information, including insider information.

A Semistrong Form Eﬃcient Market Is Distinct from a Weak