CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

The best characterization of the strong form of the efficient market hypothesis (EMH) with respect to the information set is that it encompasses ______.
A. neither the weak-form nor the semi-strong-form hypothesis
B. the semi-strong-form but not the weak-form hypothesis
C. both the weak-form and semi-strong-form hypotheses
Explanation: The difference between the three forms of the EMH revolves around the information set included in each. The weak form includes public market information, the semi-strong form includes all public information, and the strong form includes all public and private information. The strong-form EMH encompasses both the weak-form and the semi-strong-form EMH.

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