Question

6) Strong-form efficient markets theory proclaims that ________. A) one can chart historical stock prices to...

6) Strong-form efficient markets theory proclaims that ________. A) one can chart historical stock prices to predict future stock prices such that you can identify mispriced stocks and routinely outperform the market B) one can exploit publicly available news or financial statement information to routinely outperform the market C) current prices reflect the price and volume history of the stock, all publicly available information, and all private information D) current prices reflect the price and volume history of the stock, all publicly available information, but no private information

Homework Answers

Answer #1

Answer: C) Current prices reflect the Price and volume History of the stock, all Publicly available information,and all private information.

Efficient Market Hypothesis: informational Efficiency of the market classified Markets in to three forms :

1.weak- form efficient market: Stock price is independent to the past price

2. Semi-strong form Efficient market: stock reflects all publicly available available information

3.Strong form of efficient market : stock price reflects both Public and privately available information.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
16. According to the semi-strong form of market efficiency, stock prices reflect __________information, while according to...
16. According to the semi-strong form of market efficiency, stock prices reflect __________information, while according to the strong form of market efficiency, stock prices reflect __________information. A. all public ; all relevant (all public and private). B. all relevant (all public and private) ; all public. C. all previous information contained in history of trading ; all public. D. all public ; all previous information contained in history of trading.
You believe that stock prices reflect all information that can be derived by examining market trading...
You believe that stock prices reflect all information that can be derived by examining market trading data such as the history of past stock prices, trading volume, or short interest, but you do not believe stock prices reflect all publicly available and inside information. You are a proponent of the ____________ form of the EMH. If you believe in the __________ form of the EMH, you believe that stock prices reflect all relevant information, including information that is available only...
Which of the following is not part of the theory of informational efficiency and the efficient...
Which of the following is not part of the theory of informational efficiency and the efficient markets hypothesis? A All information relevant to the values of traded securities can be obtained easily and at low cost. B Buyers and sellers do not act rationally. C Current market prices reflect all publicly available information. D The market contains many buyers and sellers. E All information contained in past price movements is fully reflected in current prices.
If financial markets are semi-strong form efficient, all investors can effectivley select stocks for their portfolio...
If financial markets are semi-strong form efficient, all investors can effectivley select stocks for their portfolio by throwing darts at the Wall Street Journal stock page. Any stock selected by dart throwing will be just as good an investment as stocks in a professionally-developed portfolio. a. This is false because if you pick stocks via darts, investors may not up with a desirable risk-return combination. b. This is false because professionals can guarantee higher portfolio performance given the same level...
The current literature generally concludes that the share markets in the developed countries are semi-strong form...
The current literature generally concludes that the share markets in the developed countries are semi-strong form efficient but not strong form efficient. Which of the following statements is consistent with the finding? Select one: a. Fundamental analysis will not yield any return as the current share price reflects all publicly available information. b. Technical analysis is still useful and gives the investor an advantage over others. c. The current share price reflects both public and private information. d. Insider trading...
Assume that markets are weak-form efficient, but not semi-strong form or strong form efficient. Which of...
Assume that markets are weak-form efficient, but not semi-strong form or strong form efficient. Which of the following statements is most correct? a. Each common stock has an expected return equal to that of the overall market. b. Bonds and stocks have the same expected return. c. Investors can expect to earn super-normal returns if they have access to public information. d. Investors may be able to earn super-normal returns if they have access to information that has not been...
Q1: Representativeness, according to financial economists, leads to: strong form efficient financial markets. stable stock returns...
Q1: Representativeness, according to financial economists, leads to: strong form efficient financial markets. stable stock returns over both short and long periods of time. stock price under reactions to new information. abnormal long-term profits. overreactions in stock returns. Q2: The efficient market hypothesis says that, on average, professional investors will: tend to earn below average rates of returns. outperform investors with inside information. earn a normal rate of return. earn the same rate of return over time regardless of the...
Which of the following statements related to strong and semi-strong market efficiency are true? In a...
Which of the following statements related to strong and semi-strong market efficiency are true? In a semi-strong form efficient market, all past price and trading information (but not all other publicly available information) is fully impounded into current market prices In a strong form efficient market, corporate insiders are not be able to make superior profits to the market through private information In a semi-strong form efficient market, investors using fundamental analysis (but not technical analysis) will be able to...
As regards the Efficient Market Hypothesis (EMH) in its three forms (weak, semi-strong and strong) assign...
As regards the Efficient Market Hypothesis (EMH) in its three forms (weak, semi-strong and strong) assign a form to each example below: Stock price is based on all information private and public. _______ It is of no use to perform a technical analysis (which is stock price prediction based exclusively on past trading data,) in selecting a stock. ______ It is useless for us to analyse a stock based on publicly available information. _______ The most valid form of the...
The idea that stock prices should reflect all available information and can thus not be predicted...
The idea that stock prices should reflect all available information and can thus not be predicted is known as _________ . efficient markets rigged markets inefficient markets none of the above