- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 3. Market Efficiency
- Subject 2. Forms of Market Efficiency
CFA Practice Question
Which of the following efficient market hypotheses maintains that all information is already impounded into the value of a security?
II. Semi-strong form
III. Strong form
I. Weak form
II. Semi-strong form
III. Strong form
Correct Answer: III
User Contributed Comments 3
User | Comment |
---|---|
Spawellian | strong form efficient implies weak and semi hold also. |
ilgibe | The reverse doesn't hold. |
johntan1979 | Read the question carefully. "ALL INFORMATION". Although strong form INCLUDES semi-strong and weak, that doesn't mean the latter two applies to "ALL INFORMATION". |