Market Efficiency Quiz

Market Efficiency

• The Efficient Markets Hypothesis (EMH) proposes that financial markets are efficient, meaning that all available information is already reflected in asset prices.

• This implies that it is impossible to consistently outperform the market through analysis of publicly available information.

• EMH suggests that all price changes are unpredictable, as they react to new information instantaneously and rationally.

Test your understanding of the Efficient Markets Hypothesis (EMH) and the implications of market efficiency. This quiz covers concepts about how information is reflected in asset prices and the unpredictability of price changes. Challenge yourself to see if you can outperform the market knowledge!