If the stock market is semi-strong-form efficient, investors can “beat the market” if they A. trade...
If the stock market is semi-strong-form efficient, investors can “beat the market” if they
- A. trade quickly enough based on recent public information.
- B. get inside information.
- C. train monkeys to pick stocks for them.
- D. perform technical analysis
.
Homework Answers
The correct option is B
Semi Strong form efficient refers to the market condition when the market that adjusts quickly to any public information available and the stock prices changes accordingly, in this type no investor can benefit from technical and fundamental anaylsis.
The investor in semi strong form efficient market only benefit only if he gets material inside information that others investors doesn't have.
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If the stock market is semi-strong-form efficient, investors can
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