Which of the following statements is incorrect?
A) A market that is semi-strong form efficient cannot be weak form efficient.
B) Semi-strong form efficient markets have asset prices that reflect all publicly known and available information.
C) The fact that professional fund managers do not outperform the market is strong evidence for the semi-strong form of market efficiency.
D) One way of testing for semi-strong form efficiency is to examine the speed of adjustment of stock prices to announcements of significant new information.

Question

Quizplus · Accepted Answer

Semi-strong form efficiency includes weak form efficiency. In a semi-strong form efficient market, prices reflect all publicly available information, which includes past trading information covered under weak form efficiency. Thus, a market that is semi-strong form efficient is also weak form efficient, making statement A incorrect.

Which of the Following Statements Is Incorrect