n NISM Certifications
XXI NISM Series XXI-A
Medium

Fama had proposed three forms of market efficiency. Which of these is NOT one of the official forms?

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Weak Form

  2. B

    Semi-Strong Form

  3. C

    Strong Form

  4. Random Walk Form

    Correct answer

Why this is the answer

The three accepted forms are Weak, Semi-Strong, and Strong; "Random Walk" describes a market behavior, not a specific efficiency form.

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