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Gurdip plots the historic movements of share prices and uses this analysis to make her investment decisions.
Oliver believes that share prices reflect all relevant information at all times.
Gurdip’s category was “not efficient at all”. In the book there are only 3 options given weak strong and semi. how would someone identify or differentiate if its “weak or no efficient at all?” I chose “weak” and got it wrong.
All forms of efficiency are describing how share prices react to information from the company.
Weak form efficiency is when prices only react when information reaches the market (stock exchange).
If prices are not reacting to new information at all then there is no efficiency at all.