X hits on this document

Powerpoint document

Corporate Financing Decisions and Efficient Capital Markets - page 7 / 28

107 views

0 shares

0 downloads

0 comments

7 / 28

“Forms” of Market Efficiency

Strong Form Efficiency

A market is said to be strong form efficient if current market prices fully incorporate all (including inside) information.

Since publicly available information is a subset of all information, if a market is strong form efficient it is semi-strong form efficient and weak form efficient.

In a strong form efficient market no investor can make profits in excess of the equilibrium expected return trading on any information (including "inside" information).

This is obviously an extreme form of efficiency.

Document info
Document views107
Page views107
Page last viewedMon Jan 23 21:02:37 UTC 2017
Pages28
Paragraphs227
Words1316

Comments