The semi-strong form of the efficient market hypothesis states that:
A) future share prices are predictable.
B) all available information is reflected in the price of securities.
C) security prices reflect all publicly available information.
D) None of the given choices are correct.

Question

Quizplus · Accepted Answer

The semi-strong form of the efficient market hypothesis states that security prices reflect all publicly available information. This means that any relevant information that is publicly available will already be reflected in the current price of a security, making it impossible for an investor to consistently achieve higher returns than the market by using this information.

The Semi-Strong Form of the Efficient Market Hypothesis States That