Question

According to the efficient markets hypothesis, stock prices:_______

a) contain no useful information.
b) contain both public and private information that is helpful for some investors to outperform other investors.
c) reflect all publicly available information about the stock market.
d) reflect all private company information that is known only to company insiders.

Answer 1

The correct answer to the following question will be Option C.

Step-by-step explanation:

• The efficient market theory incorporates all applicable financial sector details particularly stock market or share price information. It provides everyone the details related to all financial assets mostly on the marketplace.
• The revealed market values have always been accurate and represent potential commodity prices dependent on reports as well as the knowledge that is going to come up.

The remaining three choices do not apply to the specified scenario. Thus choice "C" is the correct one.