n NISM Certifications
XV NISM Series XV
Medium

The Efficient Market Hypothesis (EMH) states a key principle about stock prices. Which statement reflects EMH accurately?

Practice question from NISM XV Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Share prices incorporate and reflect all relevant information

    Correct answer

  2. B

    Share prices follow trends and patterns

  3. C

    A smart investor can always exploit price discrepancies

  4. D

    Future prices can be determined by past market trends

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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