When investors cannot make superior profits on a continual basis based on past prices,public or private information,the market is said to be:
A) weak-form efficient.
B) semi-strong form efficient.
C) strong-form efficient.
D) fundamentally efficient.

Question

Quizplus · Accepted Answer

When investors cannot make superior profits on a continual basis even if they have access to all public and private information, the market is said to be strong-form efficient. This is the highest level of market efficiency and suggests that any attempts to beat the market through analysis or insider knowledge is unlikely to be successful in the long run. Therefore, option C is the correct answer.

When Investors Cannot Make Superior Profits on a Continual Basis