A University Professor Is Researching the Impact of Non-Public Information

question 9

Multiple Choice

A university professor is researching the impact of non-public information on the marketplace.She finds that investors who do have access to material, non-public information are consistently earning above-average risk-adjusted returns, and that the market price of the targeted securities are partially reflecting the new information.This is a violation of:
I.Strong form market efficiency
II.Semi-strong market efficiency
III.Weak form market efficiency

• A)I only
• B)I and II
• C)I and III
• D)II and III

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Definitions:

Quantitative Data

Information that can be measured and recorded using numbers, often used for research, analysis, and statistics.

Survey Research

A method of gathering information by asking standardized questions to a specific group of people to analyze their behaviors, beliefs, or opinions.

Norms

Established standards of behavior considered acceptable within a society or group.

Literature Review

A thorough search through previously published studies relevant to a particular topic.