Examveda
Examveda

Form of market efficiency which states that prices of stock reflects public and private information of firm is classified as

A. weak form of market efficiency

B. strong form of market efficiency

C. semi-strong form market efficiency

D. expensive form market efficiency

Answer: Option B

Solution(By Examveda Team)

Form of market efficiency which states that prices of stock reflects public and private information of firm is classified as strong form of market efficiency. Market efficiency refers to the degree to which market prices reflect all available, relevant information. If markets are efficient, then all information is already incorporated into prices, and so there is no way to "beat" the market because there are no undervalued or overvalued securities available.

This Question Belongs to Management >> International Finance And Treasury

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