Asked by Dharmesh Kharel on May 11, 2024
Verified
A weak form efficiency of market efficiency is considered to hold in well-organized markets.
Weak Form Efficiency
A form of market efficiency where all past trading information is already reflected in stock prices, implying that technical analysis cannot yield consistent excess returns.
Market Efficiency
A concept that describes the extent to which market prices fully reflect all available information, making it impossible to consistently achieve higher-than-normal returns.
Well-Organized Markets
Financial markets that are structured in a manner to ensure transparency, fair trading practices, and efficiency.
- Comprehend the core ideas of the Efficient Market Hypothesis (EMH) and the distinctions between its types (weak, semi-strong, strong).
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Learning Objectives
- Comprehend the core ideas of the Efficient Market Hypothesis (EMH) and the distinctions between its types (weak, semi-strong, strong).
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