Strong form efficiency: Difference between revisions
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There are three forms of potential efficiency: the weak form, the semi-strong form and the strong form. | There are three forms of potential efficiency: the weak form, the semi-strong form and the strong form. | ||
The strong form states that analysis of public knowledge and even insider information cannot generate consistent excess returns. | The strong form states that analysis of public knowledge and even insider information cannot generate consistent excess returns. | ||
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== See also == | == See also == | ||
* [[Closed period]] | |||
* [[Efficient market hypothesis]] | * [[Efficient market hypothesis]] | ||
* [[Semi-strong market efficiency]] | * [[Semi-strong market efficiency]] | ||
* [[Weak form efficiency]] | * [[Weak form efficiency]] | ||
[[Category:Corporate_finance]] | |||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
Latest revision as of 08:34, 23 July 2021
One form of the Efficient Market Hypothesis (EMH).
The EMH is the general hypothesis that markets operate efficiently. In other words that assets are fairly priced by the market mechanism to incorporate available information.
There are three forms of potential efficiency: the weak form, the semi-strong form and the strong form.
The strong form states that analysis of public knowledge and even insider information cannot generate consistent excess returns.
