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Asked by Jasneet Kaur Singh on May 02, 2024

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A strong form of market efficiency is considered to hold in well-organized markets.

Strong Form

In the context of efficient market hypothesis, it states that all information, public and private, is completely reflected in stock prices.

Market Efficiency

A concept in financial economics that suggests that asset prices fully reflect all available information.

Well-Organized Markets

Financial markets characterized by high levels of efficiency, transparency, liquidity, and regulation, facilitating fair and orderly trading and pricing of securities.

  • Recognize the principles of efficient market hypothesis (EMH) and its different forms (weak, semi-strong, strong).
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CZ
Chelsea ZaldivarMay 09, 2024
Final Answer :
False
Explanation :
A strong form of market efficiency suggests that all information, both public and private (or insider information), is already reflected in stock prices, which is a theoretical condition not typically found in real-world markets, including well-organized ones.

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