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according to the semi strong form of market efficiency which of the following are the information...

according to the semi strong form of market efficiency which of the following are the information you cannot use to earn risk-adjusted profits

1.past patterns in stock price

2.past patterns in trades

3. past patterns in returns

4. Private information only known by company CEO

5. Enraning and dividends announcements

6.takeovers and divestiture announcements

7.comapny financial statement

8. good news about a firm advertised on CNBC's Mad Money

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Answer #1

Question:

According to the semi strong form of market efficiency which of the following are the information you cannot use to earn risk-adjusted profits:

1.Past patterns in stock price

2.Past patterns in trades

3. Past patterns in returns

4. Private information only known by company CEO

5. Earnings and dividends announcements

6. Takeovers and divestiture announcements

7.Company financial statement

8. Good news about a firm advertised on CNBC's Mad Money

Ans: 4. Private information only known by company CEO

Explanation: In a semi-strong-form efficient market, prices reflect all publicly known and available information, including all historical price information. So, according to the semi strong form of market efficiency the Private information only known by company CEO cannot be used to earn risk-adjusted profits.

So, our answer option is 4. Private information only known by company CEO.

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