An efficient market hypothesis states in which all public or private information is reflected in current market prices is classified as
A
market efficiency
B
semi strong efficiency
C
weak form efficiency
D
strong form efficiency
Correct Answer: strong form efficiency
An efficient market hypothesis states in which all public or private information is reflected in current market prices is classified as strong form efficiency. Strong-form efficiency is a component of the random walk theory and states that market and securities prices are not random and are influenced by past events. Strong-form efficiency is the opposite of weak form efficiency.