Answer (A) is correct . The EMH states that stock prices fully reflect all relevant information, including public and private information. The securities prices are in equilibrium because they are always adjusting to new information. The weak form of the EMH states that only past price movements are reflected in current securities prices and no abnormal returns can be earned.
Answer (B) is incorrect because The semistrong form of the EMH states that only public information is reflected in securities prices.
Answer (C) is incorrect because The strong form of the EMH states that all information, including public and private, is reflected in securities prices.
Answer (D) is incorrect because The EMH states that relevant information is reflected in securities prices from at least the past price movements.
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