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Basic Question 4 of 20
In order to test the efficient-market hypothesis in the semi-strong form, researchers have used ______.
II. measurements of the performance of mutual fund managers over the years
III. measurements of how rapidly security prices adjust to different news items
I. estimations of the serial correlation (autocorrelation) for securities and markets
II. measurements of the performance of mutual fund managers over the years
III. measurements of how rapidly security prices adjust to different news items
User Contributed Comments 7
| User | Comment |
|---|---|
| achu | I is test for weak EMH. III is indeed for semi-strong. Now, II: would that be a test for the weak EMH? |
| danrow | I think (II) is a test of strong EMH. |
| todolist | (II) is a test of strong EMH - nobody beats the market! |
| steved333 | yep. strong. |
| johntan1979 | II is not strong form. II is not even a relevant test of EMH, since it only states "performance", which can be outperform or underperform the index. Only if stated "underperform the index", this supports semi-strong form. |
| Shaan23 | Yeah John is correct. That is not a test for any of the EMH's. |
| farhan92 | i remember covering a study that covered this but the name of the dude escapes me! |
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Learning Outcome Statements
describe market anomalies
CFA® 2025 Level I Curriculum, Volume 3, Module 3.