Question

If you believe in the ________ form of the EMH, you believe that stock prices reflect all relevant information, including historical stock prices and current public information about the firm, but not information that is available only to insiders.

Answer 1

The correct answer is letter "A": semistrong.

Step-by-step explanation:

The semistrong form efficiency of the market is part of the Efficiency Market Hypothesis (EMH) that states stock prices can only be "predicted" using available information public to everyone. Under this approach, not even insiders' information would represent a difference in estimating the future value of a stock.

The semistrong for of the EMH leaves fundamental and technical analysis useless on stock price fluctuation.