Question

16. According to the semi-strong form of market efficiency, stock prices reflect __________information, while according to the strong form of market efficiency, stock prices reflect __________information.

A. all public ; all relevant (all public and private).

B. all relevant (all public and private) ; all public.

C. all previous information contained in history of trading ; all public.

D. all public ; all previous information contained in history of trading.

Answer 1

EMH have 3 phases; 1.strong form 2.semi strong form 3.week form.

"The semi-strong-form Efficient Market Hypothesis claims both that prices reflect all (C)publicly available information and that prices instantly change to reflect new (A)public information"

in semi strong form of market efficiency states that how the publically available information reflects on the stock price.

so the answer is

1- option. C - all public; all previous information containned in history of trading; all public

2.option A - all public; all relevant (all public and private)