CFA Practice Question

CFA Practice Question

Which one of the following is correct?
A. Weak-form efficient market hypothesis asserts that security prices reflect (take into account) all publicly available information.
B. Strong-form efficient market hypothesis asserts that security prices reflect (take into account) all publicly and privately available information.
C. Semi-strong form efficient market hypothesis does not rule out the usefulness of technical and fundamental analysis.
Explanation: It is the semi-strong-form efficient market hypothesis that asserts that security prices reflect (take into account) all publicly available information (thus rules out the usefulness of technical and fundamental analysis). The weak-form limits itself to all security market information (such as historical sequence of prices, volumes etc.)

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