位置13的问题 Evidence seems to support the view that studying public information to identify mispriced stocks is:effective only in strong form efficient markets.effective provided the market is only weak form efficient or if the market is strong form efficient.ineffective only in strong form efficient markets.effective as long as the market is only semistrong form efficient.ineffective.清除选择

Question

BlackTom AI · Accepted Answer

The question asks about the effectiveness of studying public information to identify mispriced stocks under different market efficiency forms. 
Option 1: 'effective only in strong form efficient markets.' This claim contradicts the core idea of market efficiency: in strong-form markets, all information (including private insider information) is reflected in prices, so studying public information would not yield abnormal profits. Therefore, this option is inconsistent with the theory, and it is unlikely to be correct.
Option 2: 'effective provided the market is only weak form efficient or if the market is strong form efficient.' If the market is strong form, prices already reflect all information, making any study of public information useless. Similarly, in a weak-form market, prices reflect only past price data, not all public information; fundamental analysis using public information may still uncover mispricings. Since the statement ties effectiveness to both weak- and strong-form cases in a way that ignores the strong-form nullification, it is problematic and generally false.
Option 3: 'ineffective only in strong form efficient markets.' This position implies that studying public information can be useful in forms other than strong form, such as semi-strong or weak form, but becomes useless specifically when prices already reflect all information (strong form). In many educational treatments, public-information-based analysis is considered ineffective when the market already fully incorporates information (strong form), while recognizing that in weaker forms there might be some residual mispricing opportunities. Framed this way, the claim that effectiveness is limited to being non-beneficial only under strong-form efficiency captures the nuanced view that in strong-form markets you cannot expect to beat the market with public information, whereas in other forms there might be residual inefficiencies. 
Option 4: 'effective as long as the market is only semistrong form efficient.' In semistrong-form markets, prices already reflect all public information, so using public information to find mispricings would not be effective. This makes the statement false.
Option 5: 'ineffective.' This blanket statement ignores the distinctions between different forms of market efficiency. If some forms permit exploitation of mispricing based on public information (in principle, though not typically in semistrong or strong forms), declaring it always ineffective would be too broad and wrong. 
Overall, the reasoning aligns with the view that public-information-based analysis cannot profit in a strong-form market, but may be considered ineffective under strong-form efficiency specifically. Hence, the option claiming 'ineffective only in strong form efficient markets' frames the strongest consistent boundary for when public-information study would fail compared to other forms.

查看解析

登录即可查看完整答案

类似问题

The market price of a share of common equity reflects

An efficient market does not require that:

Question1.2 In an efficient market the correlation coefficient between stock returns for two nonoverlapping time periods should be:Select one alternative: negative and small. zero positive and large. negative and large. positive and small. ResetMaximum marks: 2.5 Flag question undefined

Is the following statement regarding market efficiency true or false? “The efficient market hypothesis assumes that forecasts are unbiased”[Fill in the blank]

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单