Ch 1

Discussion in 'CM2' started by Yuvraj, Jan 8, 2023.

  1. Yuvraj

    Yuvraj Made first post

    If a market is not weak form efficient, can we conclude it to not be semi-strong or strong form EMH as well? Also does it imply inefficient market?
     
  2. CapitalActuary

    CapitalActuary Ton up Member

    If a market is not weak form efficient, that means you can use information from past prices to make money trading the markets. That would invalidate the semi-strong and strong forms, since both of these say you can't use public information (like past prices) to make money trading the markets.

    I don't know what you mean by 'inefficient market', perhaps you could explain. There are various possible definitions of market efficiency (hence weak / semi-strong / strong forms).
     

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