- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 3. Market Efficiency
- Subject 2. Forms of Market Efficiency
CFA Practice Question
The semi-strong form of the efficient market hypothesis asserts that stock prices ______
B. fully reflect all publicly available information.
C. fully reflect all relevant information including insider information.
D. may be predictable.
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! |
| mrushdi | THANKS TONY |
| johntan1979 | Exactly. Don't simply include and imply. |