标题: EMH weak form question [打印本页] 作者: Bad5shah 时间: 2011-7-11 18:23 标题: EMH weak form question
Which of the following statements most accurately describes the weak-form Efficient Market Hypothesis (EMH)? The weak-form EMH assumes that current security prices:
A. fully reflect all information from public and private sources.
B. fully reflect all security market information, including transactions by exchange specialists.
C. adjust rapidly to the release of all public information; that is, security prices fully reflect all public information.
Correct answer is B...but why? Why is C incorrect? does the weak form assume prices change slowly to release of public information?作者: Penny-wenny 时间: 2011-7-11 18:23
Weak EMH claims that prices on traded assets (e.g., stocks, bonds, or property) already reflect all past publicly available information.
Semi-strong EMH claims both that prices reflect all publicly available information and that prices instantly change to reflect new public information.
Weak: past info
semi: past and present
strong: past, present, and insider
It's meant to trick you and the question sucks, I agree
Edited 2 time(s). Last edit at Wednesday, June 2, 2010 at 05:05PM by nickfaulkner.作者: Kiakaha 时间: 2011-7-11 18:23
so basically...
weak form: NOT ALL public information available (only some)
semi strong: ALL public information available
strong: ALL public and private information available
is that right?作者: chetan86 时间: 2011-7-11 18:23
Weak Form EMH states that technical analysis will not generate excess return. When all security market information is reflected in security prices, then technical analysis won't be useful!
