D eep the highest 8. The efficient markets hypothesis True or False: The efficient markets hypothesis holds only if all investors are rational. True False Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of determines the ability of investors to "beat the market and earn excess (or abnormal) returns on their investments. If the ma will react rapidly as new relevant information becomes available. Financial theorists have identified three levels of informationa what information is incorporated in stock prices. Identify the form of capital market efficiency under the efficient market hypothesis described in the following statement: 7 Days Left Current market prices reflect all relevant publicly available information This statement is consistent with: Weak form efficiency