The most relevant form of market efficiency to financial reporting is:  Reading required:            Learning objective 2.5.2 on page 63-64.Group of answer choicesthe weak form.the strong form.None of the options is correct.the semi-strong form.

Which of the following statements about the strong form of market efficiency is not correct? Reading required:            Learning objective 2.5.2 on page 63-64.Group of answer choicesCapital markets are not considered to be efficient in the strong form.Investors are able to participate in 'insider trading'.Security prices fully reflect all information, including that which is not publicly available.Investors are unable to earn abnormal returns through private information.

Single choice3)The three different forms of market efficiency are:Past form, peak form and future formWeak form, semi-strong form, and strong formEntry form, maintain form and exit form

Semi-strong form efficiency is a stronger form of efficiency than weak form efficiency since price histories are also public information.

"In relation to the Efficient Markets Hypothesis, which of the following statements is false?" The weak form of market efficiency suggests the security price reflects information contained in the sequence of past prices. "The strong form of market efficiency suggests that the share price makes a rapid and unbiased response to all publicly available information, but not private information." The semi-strong form of the efficient market hypothesis predicts that the share price will rapidly impound all publicly available information including the choice of accounting policy on accounting numbers. The semi-strong form of market efficiency suggests that the share price makes a rapid and unbiased response to all publicly available information.

Which of the following is a violation of the semi-strong form of market efficiency? a) ABC Inc. has announced decreased year-over-year earnings, yet its stock price has increased following that announcement b) ABC Inc. stock price return follows a random walk c) John Dow made money in ABC Inc. based on his private information analysis d) None of the above