The market price of a stock moves or fluctuates daily. This fluctuation is: Sele
ID: 2744082 • Letter: T
Question
The market price of a stock moves or fluctuates daily. This fluctuation is: Select one: a. consistent with the semistrong form of the efficient market hypothesis because as new information arrives daily prices will adjust to it. b. None of these. c. consistent with the strong form because prices are controlled by insiders. d. inconsistent with the weak form efficient market hypothesis because all past information should be priced in. e. inconsistent with the semistrong efficient market hypothesis because prices should be stable.
Explanation / Answer
a) consistent with the semistrong form of the efficient market hypothesis because as new information arrives daily prices will adjust to it.
in semi strong efficient market hypothesis, all publicly available information is incorporated
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