Question
Please help me with the question below: You have been investing in the stock for many years now and have consistently generated abnormal returns on
Please help me with the question below:
You have been investing in the stock for many years now and have consistently generated abnormal returns on your stock investments (you have been earning more than the opportunity cost of money and the normal risk premium). Nobody else knows your secret method, but everybody is envious of your success
A. If all you do is analyzing historical prices and volume data, it violates the Weak Form Efficiency.
B. If your method uses all the publicly available information to select investments, it violates the Semi-Strong Form Efficiency.
C. If you secretly (and illegally) trade on insider (private) information, it violates the Strong Form Efficiency.
D. All the above statements are true.
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