If the financial markets are at least semi-strong form efficient, then: - An increase in the value of one security should be offset by a decrease in the value of another security. - Stock prices should increase or decrease slowly as new events are analyzed and the information is absorbed by the markets. - Stock prices should remain constant. - Stock prices will only change when an event actually occurs, not at the time the event is anticipated. - Stock prices should only respond to unexpected news and events.
Added by Stefanie M.
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Step 1: The semi-strong form of market efficiency states that all publicly available information is already reflected in the stock prices. Show more…
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