When Market Is Efficient in the Semi-Strong Form

question 16

Multiple Choice

When market is efficient in the semi-strong form:

• A) investors would be able to earn abnormal returns by using publicly available information.
• B) a security's price at a particular time fully reflects the information contained in its sequence of past prices.
• C) investors would be able to earn abnormal returns by trading on private information.
• D) a security's price at a particular time fully reflects both publicly and privately available information.

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Definitions:

Legal Definition

The explicit description or determination of a concept or term as outlined by legal statutes or jurisprudence.

Ambiguous

Relates to information or situations that are unclear, uncertain, or can be understood in more than one way.

Confusion

A state of mind in which a person finds it difficult to understand a situation or interpret information correctly.

Glass Escalator

A metaphor describing how men, particularly in female-dominated professions, often rise faster in rank or are paid more than their female counterparts.