Consider the Following Two Statements: (I) If Markets Are Strong

question 42

Multiple Choice

Consider the following two statements: (i) If markets are strong form efficient, the only reason that prices change is because there is news.
(ii) In strong form efficient markets, investors can ignore their risk exposure.

• A)(i) is correct, (ii) is incorrect.
• B)(ii) is correct, (i) is incorrect.
• C)Both (i) and (ii) are correct.
• D)Both (i) and (ii) are incorrect.
• E)In strong form efficient markets, prices do not change.

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