If the market is weak form efficient:
A) semistrong form efficiency holds.
B) strong form efficiency must hold.
C) semistrong form efficiency may hold.
D) markets are not weak form efficient.
E) None of these.

Question

Quizplus · Accepted Answer

Semistrong form efficiency may hold because weak form efficiency only considers past prices and does not necessarily take into account all other publicly available information, which is what is considered in semistrong form efficiency. Strong form efficiency would imply that all information, even private information, is already reflected in prices, which is a higher level than semistrong form efficiency.

If the Market Is Weak Form Efficient