When the insiders can earn abnormally high profits based on private information. This is again st of which form of efficien cy? Select one: O weak-form efficiency O technical analysis O strong-form efficiency O semistrong-form efficiency

When the insiders can earn abnormally high profits based on private information. This is again st of which form of efficien cy? Select one: O weak-form efficiency O technical analysis O strong-form efficiency O semistrong-form efficiency

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 44MCQ: When a Dupont analysis reveals that a company has much higher than average asset turnover and much...

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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

When the insiders can earn abnormally high profits based on pri vate information.
This is against of which form of efficien cy?
Select one:
O weak-form efficiency
O technical analysis
strong-form efficiency
semistrong-form efficiency

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