Efficient Market Hypothesis

EMH concepts review

Questions 5

Answers

1
Undervalued stocks are easy to find in an efficient market.
False
True
2
A strong form efficient market is always semi-strong form efficient.
True
False
3
Which version of the EMT states that only past price information is reflected in prices?
Weak Form
Semi strong form
Strong form
4
Frequent price changes for common stock suggest that the stock market is not efficient.
True
False
5
A semi-strong form efficient market is always weak form efficient.
False
True

EMH concepts review

Answers

1
Undervalued stocks are easy to find in an efficient market.
False
True
2
A strong form efficient market is always semi-strong form efficient.
True
False
3
Which version of the EMT states that only past price information is reflected in prices?
Weak Form
Semi strong form
Strong form
4
Frequent price changes for common stock suggest that the stock market is not efficient.
True
False
5
A semi-strong form efficient market is always weak form efficient.
False
True