This article verified, through the EMH, in the semistrong form, whether the stock market reacted as expected in face of the 2016 presidential impeachment.
by the EMH, in the semistrong form, the markets reacted as expected, providing no AR and suggesting efficiency.
Paul Boghossian (2006) considers three types of social construction: the strong form, the semistrong form, and the weak form.
Postmodernists cite as evidence for the semistrong form the fact that scientific "knowledge" is revised periodically.
According to Fama's study in 1970, there were three versions of market efficiency: weak form, semistrong form
, and strong form.
(41) The efficient market serves as the "unpaid agent of the investor, informing him that given all the information available to it, the value of the stock is worth the market price." (42) The individual implicitly relies on the market, which under efficient capital markets hypothesis in its semistrong form
, (43) reflects all publicly available information.
One needs to bear in mind that the entire exercise of evaluating stock market response to strategic decisions by firms fundamentally assumes a strong or semistrong form
of efficient market hypothesis.
of the ECMH remains intact after Enron's collapse
This is defined as a semistrong form
of rationality in which actors are assumed to be intendedly rational, but only limitedly so.
The efficiency of the stock market is also supported by a comprehensive array of empirical research.(37) In the stock market, investors rely on the integrity and efficiency of the market's pricing mechanisms to price correctly the securities traded so that they will be guided to invest capital resources in the most efficient manner.(38) Efficient pricing mechanisms are classified into three different categories, the weak form, the strong form, and the semistrong form
The information-effect or traditional semistrong form
efficient markets hypothesis is related to the efficient market theory.
Thus the finding of significant cumulative abnormal returns to McDonnell Douglas would not be consistent with the semistrong form
of efficient markets.