CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

The strong form of the efficient market hypothesis states that ______

I. security prices reflect all publicly available information.
II. insider information contains no special advantage.
III. major market events can be predicted.
A. II only
B. I and II
C. I and III

User Contributed Comments 6

User Comment
zwer I assume, all public + non-public information produces "yes" for just public information.
kalps Strong form includes public information as well
shasha i agree, 'coz obviously both I & II are for strong form. but how about III? believing it should do nothing with emh, it's eco concept, isn't it?
PeterW2006 Strong form of the efficient market hypothesis = all public and private information.

Forgive me for thinking aloud, but is it possible that this could be a trick question?

Strong Form of EMH states that security prices fully reflect all information from public and private sources, and NOT security prices reflect all publicly available information.

I answered A thinking this could be a trick question.
teddajr Strong form is inclusive of semi-strong, and semi-strong form is inclusive of weak form.
Sanghamitra all hypothesis are based on major market events cannot be predicted (i think).
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