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7. Investors with insider information can always earn a high return within a very short period...

Question

7. Investors with insider information can always earn a high return within a very short period...

7. Investors with insider information can always earn a high return within a very short period time, which form of EMH is violated if any?

Answers

The Semi strong form of efficiency states that insider information provides high return with within a very short period of time

Hence Strong form efficiency is violated as it states that the price includes all the future information and insider trader cannot profit from it .


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