[john0029]

Which of the following statements about capital market efficiency is/are correct?
(1) Insider information cannot be used to make abnormal gains in a strong form efficient capital market
(2) In a weak form efficient capital market, Ring Co’s share price reacts to new information the day after it is announced
(3) Ring Co’s share price reacts quickly and accurately to newly-released information in a semi-strong form efficient
capital market
A 1 and 2 only
B 1 and 3 only
C 3 only
D 1, 2 and 3

why statement (2) is not correct? thanks

[Author]

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