Is the Efficient Market Hypothesis wrong if someone with inside (confidential) information is able to make...

Is the Efficient Market Hypothesis wrong if someone with inside (confidential) information is able to make a profit on trades?

Expert Solution

Efficient Market Hypothesis: Definition and types in the notes.

Efficient Market Hypothesis fails if some one makes a profit out of insider information because as EMH the insider information should be useless and already taken into consideration.
Although strong Efficient Market doesn't exits in real life.

They are 3 types of market in Efficient Market Hypothesis:
Strong: Insider Information, fundamental and technical analysis useless.
Semi- Strong Markets: fundamental and technical analysis useless.
Weak: technical analysis useless in the market.

jeff jeffy answered 1 month ago

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