After controlling for risk, if someone were able to earn greater than the average returns for the market on a consistent basis using publicly available information, which form of market efficiency is violated?
A) none of forms would be violated
B) semi-strong
C) strong
D) all of the forms of market efficiency would be violated,

Question

Quizplus · Accepted Answer

If someone is able to consistently earn above-average returns using publicly available information, it suggests that the market is not semi-strong efficient, as public information is quickly reflected in prices. It does not necessarily imply that other forms of market efficiency (such as weak or strong) are violated.

After Controlling for Risk, If Someone Were Able to Earn