A Semistrong Form Efficient Market Is Distinct from a Weak

question 11

Multiple Choice

A semistrong form efficient market is distinct from a weak form efficient market by:

• A)incorporating only random movements in the price.
• B)incorporating all publicly available information in the price.
• C)incorporating inside information in the price.
• D)All of the above.
• E)None of the above.

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Definitions:

Chi-squared Distribution

A probability distribution used in hypothesis testing that is derived from the sum of the squares of k independent standard normal random variables.

Critical Value

A threshold in statistical testing that delineates the boundary for rejecting the null hypothesis.

Left-tailed Area

The area under the curve of a distribution to the left of a specified value, often used in hypothesis testing to determine the likelihood of observing a result at least as extreme as the one observed.

Degrees Of Freedom

The number of independent values or quantities that can vary in the calculation of a statistic, crucial for assessing the relevance of test results.