Lecture 7 - FOREX Market Efficiency I Flashcards Preview

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Flashcards in Lecture 7 - FOREX Market Efficiency I Deck (5)
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1
Q

The concept of market efficiency is not specific to the…

A

FOREX market.

2
Q

An efficient market was first defined by Eugene Fama (1970) as…

A

One “in which prices always “fully reflect” available information”.

3
Q

Weak-form efficiency.

A

The current prices of securities instantly and fully reflect all information of the past history of securities prices.

4
Q

Semi-strong-form efficiency.

A

The current prices of securities instantly and fully reflect all publicly available information.

5
Q

Strong-form efficiency.

A

The current prices of securities instantly and fully reflect all information, both publicly available information and privately held information held by company insiders.