Question

There are three forms of the efficient market theory. Tests that have found there are no patterns in share price changes provide evidence for the__________ form of the theory. Evidence for the_________form of the theory is provided by tests that look at how rapidly markets respond to new public information, and evidence for the____________form of the theory is provided by tests that look at the performance of professionally managed portfolios. Market efficiency results from competition between investors. Many investors search for information about the company's business that would help them to value the stock more accurately. This is known as___________analysis. Such research helps to ensure that prices reflect all available information. Other investors study past stock prices for recurrent patterns that would allow them to make superior profits. This is known as_________Such research helps to eliminate any patterns.

Answer 1

Answer:

weak , semistrong , strong , Fundamental , technical

Explanation:

The efficient market theory states that share prices show all the information. According to opponents of the efficient market hypothesis, stocks can deviate from their fair market values i.e, it is possible to beat the market.

There are three forms of the efficient market theory. Tests that have found there are no patterns in share price changes provide evidence for the weak form of the theory. Evidence for the semistrong form of the theory is provided by tests that look at how rapidly markets respond to new public information, and evidence for the strong form of the theory is provided by tests that look at the performance of professionally managed portfolios. Market efficiency results from competition between investors. Many investors search for information about the company's business that would help them to value the stock more accurately. This is known as fundamental analysis. Such research helps to ensure that prices reflect all available information. Other investors study past stock prices for recurrent patterns that would allow them to make superior profits. This is known as technical Such research helps to eliminate any patterns.