If a market is strong form efficient,it also implies that:
A) semistrong form efficiency holds.
B) weak form efficiency holds.
C) one cannot earn abnormal returns with inside information.
D) Both semistrong form efficiency holds; and one cannot earn abnormal returns with inside information.
E) semistrong form efficiency holds; and weak form efficiency holds; and one cannot earn abnormal returns with inside information.

Question

Quizplus · Accepted Answer

Strong form efficiency implies that all information, public and private, is reflected in stock prices. Therefore, it encompasses both semistrong and weak form efficiencies, and also means that even insider information cannot be used to earn abnormal returns.

If a Market Is Strong Form Efficient,it Also Implies That