Question

You believe that stock prices reflect all information that can be derived by examining market trading...

You believe that stock prices reflect all information that can be

derived by examining market trading data such as the history of

past stock prices, trading volume, or short interest, but you do

not believe stock prices reflect all publicly available and inside

information. You are a proponent of the ____________ form of

the EMH.

If you believe in the __________ form of the EMH, you believe

that stock prices reflect all relevant information, including

information that is available only to insiders.

If you believe in the __________ form of the EMH, you believe

that stock prices reflect all publicly available information but not

information that is available only to insiders.

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Homework Answers

Answer #1

Weak form of market efficiency : in the weak form of market efficiency, the stock prices reflect all the past available information, the market trading data, the trading volume but does not reflect the public available information and the insider information.

The strong form of efficiency :

Stock prices reflect all the public available information as well as the insider information.

The Semi-strong form of market efficiency:

The stock prices reflect all the publicly available information but not the insider information.

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