Question

What form of market efficiency do you think that the U. S. financial market have?

What form of market efficiency do you think that the U. S. financial market have?

Homework Answers

Answer #1

It is the semi strong form of market efficiency in the US financial market as it quickly absorbs the publicly available information via news, articles or any other source apart from the information drawn from its own historical data. Further, the presence of superior connectivity and spreading of the information to the investors, bring semi-strong form of efficiency in the market.
Strong form efficiency includes insider information that is prohibited even in the US financial market by the regulatory agencies. So, there is no any strong form efficiency in the US financial market.

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