The strong form of the efficient market hypothesis states that:
A)a market is more than highly efficient; it is actually perfect.
B)it is easy to beat the market.
C)mutual fund managers are superior performers.
D)None of the above

Question

Quizplus · Accepted Answer

The strong form of the efficient market hypothesis goes beyond the semi-strong form to state that stock prices reflect not only all public information, but all information. Thus, it is hypothesized that insider information is also immediately impounded into the value of a security. In a sense, we go beyond the concept of a market that is highly efficient to one that is perfect.

The Strong Form of the Efficient Market Hypothesis States That