The _____ efficient market hypothesis states that some stocks are priced more efficiently than others.
A) semi-efficient
B) semi-strong form
C) strong form
D) weak form

Question

Quizplus · Accepted Answer

The term "semi-efficient market hypothesis" is not a standard term in finance, but it suggests a scenario where the market's efficiency varies across different stocks or sectors. This implies that some stocks may reflect all available information in their prices better than others, which aligns with the idea of varying efficiency rather than the established categories of the Efficient Market Hypothesis (EMH) such as weak, semi-strong, or strong form. Each of these established categories of EMH asserts a level of market efficiency that applies broadly across the market, not selectively among different stocks.

The _____ Efficient Market Hypothesis States That Some Stocks Are