CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

The semi-strong form of the efficient market hypothesis asserts that stock prices ______

A. fully reflect all historical price information.
B. fully reflect all publicly available information.
C. fully reflect all relevant information including insider information.
D. may be predictable.
Correct Answer: B

User Contributed Comments 4

User Comment
thekapila It should be both A and B. As semi strong reflects weak form too.
tonypractice no, A is incorrect - historical price info does not include ALL public availbale info [yesterday's stock price doesn't reflect today's negative earnings annoucement, for example]

B, however, is correct - stock prices reflect all public available info...which includes historical price info!
johntan1979 Exactly. Don't simply include and imply.
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