If you live in a remote area with limited access to the news but do a lot of historical research on firms,you would prefer that the financial markets be ________ form efficient so you can have an advantage in the marketplace.
A)strong
B)semiweak
C)semistrong
D)perfect
E)weak

Question

Quizplus · Accepted Answer

If someone is doing historical research on firms and has limited access to news, they might be able to take advantage of information that has not yet been incorporated into prices. In other words, they can use the information asymmetry to make profitable trades. This would suggest that the financial markets are weak form efficient, meaning that past price and volume information is already reflected in current prices, but private information that is not widely known is not yet incorporated.

If You Live in a Remote Area with Limited Access