General Knowledge MCQ #1724

An efficient market hypothesis states that all public information which is reflected in current market prices is classified as:

General Knowledge MCQ #1724

  1. Question 1

    Q1. An efficient market hypothesis states that all public information which is reflected in current market prices is classified as:

    • A) Strong form efficiency
    • B) Weak form efficiency
    • C) Semi-strong efficiency
    • D) Market efficiency

    Answer: Semi-strong efficiency

    Explanation: Semi-strong form efficiency, per the Efficient Market Hypothesis, holds that all publicly available information is already reflected in current stock prices, so fundamental analysis cannot consistently yield excess returns.