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Which of the following actions will least likely strengthen a strong‐form efficient market? Group of answer...

Which of the following actions will least likely strengthen a strong‐form efficient market? Group of answer choices

Strong prohibitions on insider trading.

Permitting short‐selling transactions.

Opening the market for foreign investors.

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Answer #1

Answer: Permitting short‐selling transactions.

Strong form efficient markets is the strictest version of market efficiency.
In this type of market efficiency, the share prices reflect all the information available to the market participants and also certain specific info available to the insiders. Technical analysis or any information can't predict the prices at near future.

Opening the market for foreign investors to increase the number of market participants and strong prohibitions on insider trading will strengthen a strong‐form efficient market.
So, permitting short‐selling transactions will least likely strengthen a strong‐form efficient market.

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