Question

If you fail a test of weak-form efficiency, what does that say about semi-strong and strong form efficiencies? Explain.

Answer 1

Case 1: We have correctly failed weak form efficiency
A market can be semi strong efficient or strong efficient only if it is weka form efficient. So, this market wont be strong or semi strong efficient.

Case 2: We have incorrectly failed weak form efficiency
It might be the case that the market was not weak form efficient but we incorrectly failed the efficiency test. In that case, we dont have enough information to determine about semi strong or strong form of efficiency.