The Strong Form of the Efficient Market Hypothesis States That

question 85

True/False

The strong form of the efficient market hypothesis states that prices reflect all public information.

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Definitions:

P-values

In statistics, a measure that helps determine the significance of results from a hypothesis test, indicating the probability of observing the obtained results assuming the null hypothesis is true.

P-value

A statistical measure that helps in determining the significance of the results obtained from a hypothesis test, indicating the probability of observing the results by chance.

Statistical Significance

A result is said to be statistically significant if the computed p-value is less than some prescribed number, usually 0.05.

Null Hypothesis

In statistical hypothesis testing, a statement suggesting that there is no significant difference or effect and that any observed difference is due to sampling or experimental error.