If the price of a security reflects all information, whether or not it is publicly available, the market is said to be:
A) Weak form efficient.
B) Semi-strong form efficient.
C) Strong form efficient.
D) Operationally efficient.
E) None of the above.

Question

Quizplus · Accepted Answer

Strong form efficiency is a concept in the Efficient Market Hypothesis that suggests a market is strong form efficient if the prices of securities reflect all information, both public and private. This means that no investor can achieve higher returns with any information, whether it is already publicly available or not, because all information is already incorporated into the stock prices.

If the Price of a Security Reflects All Information, Whether