Free Financial Market Education: Weak, Semi-Strong …
The market seems to be semi-strong form efficient. The market had adjusted itself to the public information on Friday (11 January 2012) as soon as the market came to know about it. Alex should not have used this public information to project a decline on Monday. The drop in price is almost equal to the net present value per share no longer available ($20 million divided by 5 million).
Efficient market hypothesis semi strong - …
In a slightly less rigorous form, the EMH says a market is efficient if all relevant information is quickly reflected in the market price. This is called the form of the EMH. If the strong form is theoretically the most compelling, then the semi-strong form perhaps appeals most to our common sense. It says that the market will quickly digest the publication of relevant new information by moving the price to a new equilibrium level that reflects the change in supply and demand caused by the emergence of that information. What it may lack in intellectual rigour, the semi-strong form of EMH certainly gains in empirical strength, as it is less difficult to test than the strong form.
Such as senior managers, Efficient market hypothesis semi strong strong weak Institutional money managers - Institutional money managers, working for mutual funds, pensions and other types of institutional accounts, have been found to have typically not perform above the overall market benchmark on a consistent basis.
The Semi - Strong Form of the Efficient Market Hypothesis
Semi-strong form of market efficiency is when prices already reflect all publically available information and it is not possible to earn excess return by fundamental analysis.