The efficient markets hypothesis

The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are ef $-$such as a share of a particular corporation's common stock$-$should be $$ the present value estimate of discounted by its appropriate rate of return $($also called the intrinsic value of the stock$).$

Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficienc determines the ability of investors to "beat" the market and earn excess $($or abnormal$)$ returns on their investments. If th will react rapidly as new relevant information becomes available. Financial theorists have identified three levels of informe what information is incorporated in stock prices.

Identify the form of capital market efficiency under the efficient market hypothesis described in the following statement:

Current market prices reflect all relevant information, whether it is known publicly or privately. $q,$

This statement is consistent with: $$

Strong form efficiency