The efficient markets hypothesis

True or False: The efficient markets hypothesis holds only if all investors are rational.

False

True

Almost all financial theory and decision models assume that the financial markets are efficient. The informational effic determines the ability of investors to "beat" the market and earn excess $($or abnormal$)$ returns on their investments. will react rapidly as new relevant information becomes available. Financial theorists have identified three levels of infc what information is incorporated in stock prices.

Identify the form of capital market efficiency under the efficient market hypothesis described in the following stateme

Current market prices reflect all information contained in past price movements. $q,$

This statement is consistent with:

Weak form efficiency

Semistrong form efficiency

Strona form effici