What does the efficient market hypothesis in its semi-strong form assert?
- A Prices reflect all publicly available information
- B Prices reflect only past price data
- C Prices reflect all information including insider knowledge
- D Prices are entirely random and unrelated to information
Answer
Prices reflect all publicly available information
Weak form covers past prices, semi-strong adds all public information, and strong form adds private information. Semi-strong implies fundamental analysis on public data cannot consistently beat the market.
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