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nirvana33 [79]
2 years ago
11

The strong form of efficient market theory states that: I stock prices instantaneously reflect all publicly available informatio

n II stock prices instantaneously reflect all public and non-public information III insiders have an inherent advantage when making investment decisions IV insiders have no advantage when making investment decisions
Business
1 answer:
Reptile [31]2 years ago
4 0

<em>According to the</em><em> strong version of efficient market theory,</em>

  • <em>Instantaneously, </em><em>stock prices reflect both public and private information.</em>
  • <em>There is</em><em> no advantage for insiders when choosing investments.</em>
<h3>What exactly is the efficient market theory?</h3>
  • Share prices, according to the efficient market hypothesis (EMH) or theory, accurately reflect all available information.
  • According to the EMH, equities trade on exchanges at their fair market value.
  • EMH proponents contend that investing in a low-cost, passive portfolio is advantageous for investors.
<h3>What significance does the efficient market hypothesis have?</h3>

The efficient market hypothesis adheres to liberal economic theory and has significant political ramifications. According to the efficient market hypothesis, stock prices are always traded at a "fair" market value, negating the necessity for any form of government involvement in the market.

learn more about efficient market theory here <u>brainly.com/question/14311423</u>

<u>#SPJ4</u>

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