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Which of the following statements is correct? A. If a market is weak-form efficient, it is...

Which of the following statements is correct?
  • A. If a market is weak-form efficient, it is also semistrong- and strong-form efficient.
  • B. If a market is semistrong-form efficient, it is also strong-form efficient.
  • C. If a market is strong-form efficient, it is also semistrong- but not weak-form efficient.
  • D. If a market is strong-form efficient, it is also semistrong- and weak-form efficient.
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Homework Answers

Answer #1

A weak form efficient market reflects all the past prices and historical trends in its stock price. A semi-strong form efficient market means all the historical and public information is reflected in the stock price. For a strong form market efficiency, historical, public as well as private information is reflected. Hence, the correct option is-

D. If a market is strong form efficient, it is also semi strong and weka form efficient.

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