Question

The semistrong form of the efficient market hypothesis is best described as stating that ________ must be reflected in the current stock price.

	a.	All security price and volume data
	b.	All information contained in the financial statements
	c.	All publicly available information
	d.	All relevant information, including inside information
	e.	All costless information

Answer 1

Ans : c) All publicly Available information

Explanation:

The efficient market hypothesis has 3 different form of markets described as follows:

The semi-strong form of efficient market hypothesis theory states that all information that is publicly available is used in the calculation of a current stock price or will be quickly reflected in the current stock price.

The weak form form of efficient market hypothesis theory states that stock prices reflect all the historical data of past prices.

The strong form of efficient market hypothesis theory states that all information both publicly available information and any inside information is used in calculating the current stock prices, and hence, there will be no such information that can give any investor any advantage.