Question

In: Finance

Company insiders who can earn excess profits on company stock based on their private knowledge suggest...

Company insiders who can earn excess profits on company stock based on their private knowledge suggest that financial markets are:

a. weak from efficient

b. strong form efficient

c. semistrong form efficient

d. not efficient in any form

Solutions

Expert Solution

Option (c) is correct

Semi strong form of efficiency suggests that insider information or the information which is not available to public will help the investors to earn or make some profits.

jeff jeffy answered 2 years ago
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