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Which of the following describes a violation of the semi-strong form of the efficient market hypothesis...

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Finance

  • Which of the following describes a violation of the semi-strongform of the efficient market hypothesis (EMH)?
    • A) A classmate of yours excels in analyzing the future outlookof firms, but he does not find that his skill gives him anyadvantage in the marketplace. ?
    • B) Very risky stocks on average yield higher returns than safestocks. ?
    • C) The stock of an acquired firm tends to provide a positiveabnormal return to its ?shareholders when the merger announcementis made. ?
    • D) Stocks usually perform better when there are more insidebuyers than insider sellers. ?Examples of insiders are managers,executives, and directors. ?

Answer & Explanation Solved by verified expert
4.1 Ratings (743 Votes)
In semi strong from of market efficiency investors can only earn an abnormal return using the inside information In option D the stocks is performing better using inside information so it is    See Answer
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