The Three Forms of the Efficient Market Hypothesis (Not in Any

question 38

Multiple Choice

The three forms of the efficient market hypothesis (not in any particular order) are stated as:

• A)Weak,semi-strong and superior
• B)Weak,normal,and strong
• C)Semi-strong,weak and strong
• D)Semi-strong,normal and superior

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Definitions:

Informational Cascade

A process in decision-making where individuals consecutively follow others' actions or choices ignoring their own private information.

Investment Opportunity

A chance to invest capital with the expectation of achieving a future financial return.

Full Information

A market condition where all participants have access to all relevant information, eliminating information asymmetry.

Housing Prices

Housing prices refer to the cost of purchasing residential properties, which can fluctuate based on market demand, location, size, and other factors.