1. Informational theory assumes that all relevant information is available to investors easily or a low cost. Price movements will therefore be based on new information becoming available.This theory can be applied whether there are one, a few, or many buyers and sellers as the market is always in equilibrium.

a. Theory assumes that there are at least two buyers and sellers

b. Theory assumes all buyers and sellers act rationally in pursuing their investment interest

c. Theory holds that many buyers and sellers are necessary

d. B and c are correct

e. None of the above.

The strong form of Efficient Market Hypothesis holds that all publicly available information is reflected in current market prices.

a. True

b. False