question archive A stock market analyst is able to identify mispriced stock by analyzing the financial statements of the company's stock
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A stock market analyst is able to identify mispriced stock by analyzing the financial statements of the company's stock. what is the efficiency form of this market? Explain.
This would be weak form efficient.
Under weak form efficient, the stock price reflects all historical data.
Under semi-strong form efficient markets, the stock price reflects all historical and public information, so mispricing cannot be identified by analyzing financial data, so the market is not semi-strong form efficient.
Under strong form efficient markets, the stock price reflects all historical, public and non-public information, so mispricing cannot be identified, so the market is not strong form efficient.