The form of market efficiency which considers the speed with which the information at public level is impounded in the prices of stock is classified as ____________?
Correct answer: A. semi-strong form market efficiency
- A. semi-strong form market efficiency
- B. expensive form market efficiency
- C. weak form of market efficiency
- D. strong form of market efficiency
Explanation
Semi-strong efficiency means share prices quickly incorporate all publicly available information. Weak-form efficiency covers only past market data, while strong-form efficiency includes private information as well.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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