Anomalies related to the semi-strong form of the efficient market hypothesis indicate that:
A)the market is truly efficient.
B)high returns are very difficult to achieve.
C)the market is less than perfectly efficient.
D)public information is almost useless.

Question

Quizplus · Accepted Answer

Even if the semi-strong form of the efficient market hypothesis appears to be generally valid, exceptions can be noted. Also, it is possible that, while most analysts may not be able to add additional insight through fundamental analysis, there are exceptions to every rule. It can be assumed that some analysts have such extraordinary insight and capability in analyzing publicly available information that they can perceive what others cannot. Also, if you take a very long-term perspective, the fact that a stock's value is in short-term equilibrium may not discourage you from taking a long-term position or attempting to find long-term value.

Anomalies Related to the Semi-Strong Form of the Efficient Market