The "Strong Form" of the Efficient Market Hypothesis States That

question 53

True/False

The "strong form" of the efficient market hypothesis states that prices reflect all public information.
The strong form reflects PRIVATE as well as public information.

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Definitions:

Moving Average System

A method used in accounting and finance to smooth out data by generating a series of averages of different subsets of the full data set.

Freight-In Costs

Expenses associated with transporting goods from the supplier to the purchaser, typically included in the cost of inventory.

Freight-Out Costs

Expenses related to the transportation of goods from the seller to the buyer, typically recorded as a selling expense.

Interest Cost

The expense associated with borrowing funds, often calculated as the product of the interest rate and the outstanding principal of the debt.