Capital Market Efficiency & Price Behavior


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Which form of the efficient market hypothesis best describes the concept that market prices include all information, both public and private?

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1. Which of the following is TRUE about a stock's price in the efficient market hypothesis?

2. Which of the following statements is a defining characteristic of the weak-form efficient market hypothesis?

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About This Quiz & Worksheet

The worksheet and quiz can be used to assess your comprehension of price behavior and capital market efficiency. Stock prices and a weak-form efficient market hypothesis are some topics addressed on the quiz.

Quiz & Worksheet Goals

These tools are useful in checking your knowledge of:

  • The efficient market hypothesis
  • A strong-form of the efficient market hypothesis
  • Stock's price in the efficient market hypothesis
  • Concept of market prices including all information, both private and public
  • Weak-form efficient market hypothesis

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson on capital market efficiency and price behavior
  • Interpreting information - verify that you can read information about characteristics of a weak-form efficient market hypothesis and interpret them correctly
  • Knowledge application - use your knowledge to answer questions about different types of efficient market hypotheses

Additional Learning

Get more familiar with these financial topics using the lesson named Capital Market Efficiency & Price Behavior. This lesson helps you:

  • Determine what the EMH says
  • Identify the different forms of market efficiency
  • See what affects market prices