Strong form efficiency: Difference between revisions
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Revision as of 14:58, 30 June 2014
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.
