Which Statement Best Explains the Semi-Strong Form of the Efficient

question 29

Multiple Choice

Which statement best explains the semi-strong form of the efficient securities market hypothesis?

• A)A market in which the prices of securities traded in that market at all times properly reflect all information that is publicly known about those securities.
• B)A market in which the prices of securities traded in that market reflect all information, whether publicly or privately known.
• C)A market in which the prices of debt securities traded in that market reflect all information that is privately known about those securities.
• D)A market in which the prices of equity securities traded in that market reflect all information that is privately known about those securities.

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Definitions:

Confounding

A situation in statistical analysis where the effect of one variable on another is distorted by a third variable.

Confounded

A situation in research where the effect of one variable cannot be separated from the effect of another, affecting the validity of conclusions.

Packaging Information

Refers to the details and data provided on the packaging of products, highlighting content, usage, and safety information.

Appearance

The way that something or someone looks, which can include aspects of design, presentation, or physical manifestation.