Strong-form efficient markets theory proclaims that ________
A) one can chart historical stock prices to predict future stock prices such that you can identify mispriced stocks and routinely outperform the market
B) one can exploit publicly available news or financial statement information to routinely outperform the market
C) current prices reflect the price and volume history of the stock, all publicly available information, and all private information
D) current prices reflect the price and volume history of the stock, all publicly available information, but no private information
Answer: C
Explanation: C) Strong-form efficient markets theory proclaims that one CANNOT chart historical stock prices to predict future stock prices such that you can identify mispriced stocks and routinely outperform the market. Strong-form efficient markets theory proclaims that one CANNOT exploit publicly available news or financial statement information to routinely outperform the market. Strong-form efficient markets theory proclaims that current prices reflect the price and volume history of the stock, all publicly available information, and ALL private information.
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Indicate whether the statement is true or false