The different forms of market efficiency are
A)weak form only.
B)weak form and semistrong form.
C)weak form and strong form.
D)weak form, semistrong form, and strong form.

Question

Quizplus · Accepted Answer

The best choice is D because it includes all three forms of market efficiency: weak form, semistrong form, and strong form. Weak form efficiency assumes that all historical price and volume information is already reflected in current market prices, semistrong form efficiency adds the incorporation of all publicly available information, and strong form efficiency assumes that all information, including private information, is reflected in market prices.

The Different Forms of Market Efficiency Are