The CFO of a certain company always wears his green suit on a day that the firm is about to release positive information about his company. You believe that you can profit from this information by buying the firm’s shares at the beginning of every day that the CFO shows up wearing this green suit. Describe which form of market efficiency is consistent with your belief.
Assuming positive news about the company by believing in the decision of CFO wearing a green suit indicates it is consistent with semi-strong market efficiency.
This news is private information which helps you to give high returns if your assumption is right.
Semi strong market efficiency is based on the news of the securities and is not based on fundamental or technical analysis.
The CFO of a certain company always wears his green suit on a day that the...