The Efficient Market Hypothesis Holds That That Financial Markets Price

question 3

Multiple Choice

The efficient market hypothesis holds that that financial markets price assets at their intrinsic worth, given all available information. Which of the following forms of the efficient market hypothesis defines all available information as knowledge of past security prices?

• A) Weak
• B) Semi-weak
• C) Semi-strong
• D) Strong

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Definitions:

Linear Perspective

A technique in art and photography that creates the illusion of depth and distance by converging parallel lines at a single point on the horizon.

Convey Distance

The process of communicating or expressing the physical space or separation between objects or locations.

Continuity

The psychological principle suggesting that development involves gradual and ongoing changes, without sudden shifts or stages.

Organize Stimuli

The process of perceiving and categorizing sensory input from the environment into meaningful patterns or categories.