Lecture 7 - FOREX Market Efficiency I Flashcards
1
Q
The concept of market efficiency is not specific to the…
A
FOREX market.
2
Q
An efficient market was first defined by Eugene Fama (1970) as…
A
One “in which prices always “fully reflect” available information”.
3
Q
Weak-form efficiency.
A
The current prices of securities instantly and fully reflect all information of the past history of securities prices.
4
Q
Semi-strong-form efficiency.
A
The current prices of securities instantly and fully reflect all publicly available information.
5
Q
Strong-form efficiency.
A
The current prices of securities instantly and fully reflect all information, both publicly available information and privately held information held by company insiders.
