In order to test the strong form of market efficiency, researchers have examined the
A)recommendations of professional security analysts.
B)recommendations of professional security analysts and performance of mutual funds.
C)recommendations of professional security analysts, performance of mutual funds, and performance of pension funds.
D)performance of mutual funds and performance of pension funds.

Question

Quizplus · Accepted Answer

The strong form of market efficiency suggests that all information, public and private, is reflected in stock prices. Therefore, researchers examine the recommendations of professional security analysts, performance of mutual funds, and performance of pension funds to test this form of efficiency.

In Order to Test the Strong Form of Market Efficiency