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If the stock market is efficient in the semi-strong-form then, for any given stock, the...

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Finance

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If the stock market is efficient in the semi-strong-form then, for any given stock, the current price and investors' expectations about future prices will not change quickly to reflect new public information coming to the market the current price could easily have been predicted by looking at the past prices of that stock the expected return and actual return will typically be the same insiders will not be able to profit from private information prices are considered fair in the sense that they reflect all publicly available information A stock has annual returns of 6 percent, 14 percent, -3 percent, and 2 percent for the past four years. The arithmetic average of these returns is return for the period is percent while the geometric average percent 4.57; 4.75 4.75; 4.57 6.33; 6.19 6.19; 6.33 6.33; 6.33

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