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If all information were immediately and correctly incorporated into a stock’s price as soon as it...

If all information were immediately and correctly incorporated into a stock’s price as soon as it was made public, what would the only rational form of investment be? What would be the function of financial analysts in such a world?

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The above scenario shows that it is Strong form of efficient market hypothesis in which all the information available to the public and the information that is non-public is completely incorporated in the current stock prices, and there is no other information that can give an investor an advantage in the market.

The investors in a strong market hypothesis cannot acheive profits exceeding normal returns and cannot realize profits irrepective of the amount of research or information that is accessible to them.

As per Burton G. Malkiel who is highly learned in the field of strong form efficienct markets states that the financial analysts do not find earnings estimates, technical analysis, and investment advises useful in any way in strong form efficient markets, however the best way to maximize returns in the senario is to follow a buy-and-hold strategy by them.

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