The "Semi-Strong" Form of the Efficient Market Hypothesis States That

question 59

Multiple Choice

The "semi-strong" form of the efficient market hypothesis states that

• A) past price data is unrelated to future prices.
• B) prices reflect all public information.
• C) all information both public and private is immediately reflected in stock prices.
• D) none of these options are correct.

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Dictator Games

A type of experimental game in economics where one player, the "dictator," determines how to split an endowment between themselves and another player, the "recipient."

Ultimatum Games

Represent a scenario in economic experiments where one participant proposes a division of resources, and the other can accept or reject the offer, which, if rejected, leaves both with nothing.