The semi-strong form of the efficient market hypothesis states that:
A) the efficient market hypothesis is only half true.
B) professional investors make superior profits but amateurs can't.
C) stock prices do not follow a random walk.
D) prices reflect all publicly available information.

Question

Quizplus · Accepted Answer

The semi-strong form of the efficient market hypothesis states that stock prices reflect all publicly available information. Therefore, investors cannot consistently achieve returns greater than the market average based on analyzing publicly available information. This implies that it is difficult to outperform the market using only fundamental analysis or technical analysis.

The Semi-Strong Form of the Efficient Market Hypothesis States That