In order to test the strong form of market efficiency, researchers have:
I. examined the recommendations of professional security analysts
II. performance of mutual funds
III. performance of pension funds
A) I only
B) I and II only
C) I, II, and III only
D) II and III only

Question

Quizplus · Accepted Answer

Testing the strong form of market efficiency involves examining whether any group, including professional analysts, mutual funds, and pension funds, can consistently achieve returns above the market average, implying all information (public and private) is reflected in stock prices.

In Order to Test the Strong Form of Market Efficiency