II. Determine what form of the theory of efficient market is being described in eachitem. Write W for weak form, SE for semi-strong form, ST_ for strong form._7. The fundamental analysis will not give new information in this form.8. Both the fundamental and technical analysis will not give new information.9. The stock pricess show historical information which may or may not includeinside information._10. The stodk prices already reflect all publicly available date such as anyproduct, financial statement, etc.

IT is a semi-strong form of efficiency.

Answered: Determine what form of the theory of…

Determine what form of the theory of efficient market is being described in each item. Write W for weak form, SE_for semi-strong form, ST_for strong form.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter25: Portfolio Theory And Asset Pricing Models

Section: Chapter Questions

Problem 11MC

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

II. Determine what form of the theory of efficient market is being described in each
item. Write W for weak form, SE for semi-strong form, ST_ for strong form.
_7. The fundamental analysis will not give new information in this form.
8. Both the fundamental and technical analysis will not give new information.
9. The stock pricess show historical information which may or may not include
inside information.
_10. The stodk prices already reflect all publicly available date such as any
product, financial statement, etc.

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