A stock market analyst is able to identify mispriced stocks by comparing the average price for the last 10 days to the average price for the last 60 days. If this is true, what do you know about the market?

Question

Business

Ellie Khan

27 October, 16:43

A stock market analyst is able to identify mispriced stocks by comparing the average price for the last 10 days to the average price for the last 60 days. If this is true, what do you know about the market?

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Answers (1)

Know the Answer?

Abagail Martin · Answer 1

Consider the following thoughts

Explanation:

No. the market is a semi-strong form of efficient.

The semi-strong form of efficiency states that the market is efficient.

Yes, the historical information is also called as a public information. Weak form of efficiency is a another class of the semi-strong form of efficiency. If a market is strong form efficient, then it is also semi-strong and weak form efficient since all available information includes past prices and publicly available information. The semi-strong form also incorporates the weak form of hypothesis. They include event tests.