The strong-form efficient market implies that:
A)no investors can consistently beat the market after adjusting for risk differences
B)stock prices reflect all public and private knowledge
C)even corporate officers and insiders cannot earn above-average, risk-adjusted profits
D)more than oneall of the above

Question

Quizplus · Accepted Answer

The strong-form efficient market hypothesis asserts that all information, both public and private, is already reflected in stock prices. Therefore, even corporate officers and insiders cannot earn above-average, risk-adjusted returns. This also implies that no investors, whether professional or individual, can consistently beat the market after adjusting for risk differences, as all available information is already incorporated into stock prices. Thus, all of the above statements are true regarding the strong-form efficient market.

The Strong-Form Efficient Market Implies That