If you believe that share prices reflect all relevant information including information that is available only to insiders,which form of the efficient market hypothesis do you believe in?
A) Weak.
B) Semi-strong.
C) Strong.
D) Informational.

Question

Quizplus · Accepted Answer

The strong form of the efficient market hypothesis states that share prices reflect all information, including information that is available only to insiders. Therefore, if someone believes this, they would believe in the strong form of the EMH. The weak form suggests that share prices only reflect historical prices and patterns, while the semi-strong form suggests that share prices reflect all publicly available information. The fourth option, "Informational", is not a recognized form of the EMH.

If You Believe That Share Prices Reflect All Relevant Information