Discuss whether the following statement is true or false:
If semi-strong efficiency holds,then weak-form efficiency must hold.

Question

Quizplus · Accepted Answer

Semi-strong form tests of the efficient market hypothesis are tests of whether publicly available information is fully reflected in current stock prices.On the other hand,Weak-form tests are tests of whether all information contained in historical prices is fully reflected in current prices.Thus,weak-form efficiency is a subset of semi-strong efficiency which means weak-form efficiency must hold if semi-strong efficiency holds.

Discuss Whether the Following Statement Is True or False