The Strong Form of the Efficient Market Hypothesis States That

question 90

Multiple Choice

The strong form of the efficient market hypothesis states that:

• A) security prices reflect all publicly available information.
• B) major market events can be predicted using publicly available information.
• C) insider information contains no special advantage.
• D) future prices are predictable.

---

Definitions:

Payout Formula

A predefined method or equation used to calculate the amount to be disbursed to individuals or entities, often used in financial contexts like investments or insurance.

Stock Purchase

The act of buying shares in a company, which represents a portion of ownership in the corporation.

Discount Price

A reduced price offered on goods or services, typically below the standard cost.

Compensation

The complete sum of financial and non-financial compensation given to a worker by their employer in exchange for the work done.