Which of the following is true?
A)Most empirical evidence is consistent with strong form efficiency.
B)Most empirical evidence is inconsistent with weak form efficiency.
C)Strong form market efficiency is not supported by the empirical evidence.
D)Both A and C.
E)Both B and C.

Question

Quizplus · Accepted Answer

Empirical evidence does not support strong form market efficiency, which implies that all information public and private is already reflected in the stock prices. However, the evidence does support weak and semi-strong form market efficiency, which implies that stock prices already reflect all publicly available information, and that investors cannot consistently earn excess returns by using publicly available information.

Which of the Following Is True