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Which of the following is/are inconsistent with the semi-strong form of the efficient market hypothesis? [I] Significant non-random price movements [II] Price overreaction to the public release of new
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Which of the following is/are inconsistent with the semi-strong form of the efficient market hypothesis? [I] Significant non-random price movements [II] Price overreaction to the public release of new information [III] Superior performance of professional traders [IV] Abnormal profits from illegal insider trading

A. I and III
B. II and IV
C. I and II
D. All are inconsistent with the semi-strong form of the EMH

User Nadeem Ullah
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1 Answer

3 votes

Answer:

C. I and II

Step-by-step explanation:

Semi strong form of efficient market hypothesis is a situation where stock prices adjust quickly to any new public information that circulates in the market. It assumes that stock prices incorporates the effect of all information which is publicly available in the market.

User Augustomen
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