Strong form market efficiency
A) accurately reflects all information, both public and private.
B) only accurately reflects private information.
C) reflects only public information.
D) implies weak form market inefficiency.
E) implies semi-strong form market inefficiency.

Question

Quizplus · Accepted Answer

Strong form market efficiency implies that all information, both public and private, is accurately reflected in the market prices. Therefore, A is the correct choice. B, C, and D are incorrect choices as they either refer to only private or public information or imply inefficiency of the market. E is also incorrect as strong form efficiency encompasses semi-strong form efficiency as well.

Strong Form Market Efficiency