• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2026 exams.
Get your discount code >>

Market Efficiency

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Market Efficiency

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 25, 2018 at 7:59 pm #469417
    ayeshatabani
    Member
    • Topics: 98
    • Replies: 95
    • ☆☆

    Dear sir I’m having a bit of problem with this bpp mock exam mcq:

    Shares prices quoted on astock exchange are observed to reflect historical share price information and other historical information about a company, but also responds immediately to other information about the company when it becomes publicly available. In recent years share prices have been unpredictable and volatile.
    which market efficiency is this:
    1)weak form
    2) semi strong
    3)strong
    4)not efficient

    My answer: I ticked weak form, because its the historical information being reflected in prices.

    Their answer: semi strong form.
    their explanation:new information that effects share prices may arrive in an unpredicatble way(random walk theory) so share prices dont follow a set pattern and may move in an unpredictable and volatile manner.

    my problem: Isn’t random walk theory a characteristic of weak form efficiency? Why are they calling it semi strong form?

    Thankyou

    August 26, 2018 at 7:07 am #469457
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54820
    • ☆☆☆☆☆

    The answer is semi-strong (because the share price responds to information when it becomes publicly available). I am not sure why they have explained the answer in the way they have – it doesn’t make much sense 🙂

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Market Efficiency’ is closed to new replies.

Primary Sidebar

Kaplan CIMA Free Trial

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • umrabano63075 on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • umrabano63075 on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • baophuong on Financial performance – Example 2 – ACCA Financial Reporting (FR)
  • CarolMakombe on Chapter 6 Tax Adjusted Trading Losses – Individuals TX-UK FA2023
  • Anonymously on IAS 12 – deferred tax accounting – ACCA Financial Reporting (FR)

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in