Ennclent markets hypothesis True or False: The efficient markets hypothesis holds only if all investors are rational. False O True Almost all financial theory and decision models assume that the efficiency of financial markets determines the ability of investors to "beat the market and earn excess returns on their investments. If the markets are efficient, they wll react rapidly as new relevant information becomes available. Financial theorists have identified three levels of informational efficiency that reflect what information is incorporated in stock prices. financial markets are efficient. The informational or abnormal) Consider the following statement, and identify the form of capital market efficiency under the efficient market hypothesis based on this statement: Current market prices reflect all relevant information, whether it is known publicly or privately. This statement is consistent with: O Semistrong-form efficiency weak-form efficiency O Strong-form efficiency Consider that there is a weak-form of efficiency in the markets