Efficient Market Hypothesis Flashcards
1
Q
Efficient Market Hypothesis
A
Markets are efficient when prices reflect all relevant information at any point in time
Evidence suggests that markets are NOT strong form efficient
2
Q
Relevant Information
EMH
A
All PUBLIC and PRIVATE data
3
Q
Weak Form Efficiency
A
Prices fully reflect past market data
Technical analysis will not work
4
Q
Semi-strong form
A
Prices reflect all Public information
Fundamental analysis will not work
5
Q
Strong Form Effiency
A
Prices fully relfect all public and private information
Insider trading will not work
6
Q
A
