Can anyone explain this question please :
“If a market is weak-form efficient, but semi-strong-form inefficient, then which of the following types of portfolio management is most likely to produce abnormal return?”
Answer: Active with fundamental analysis (not with technical nor passive)
Actually I’m not interested in the answer itself, as much as in understanding what does it mean to have a market that is weak-form efficient, but semi-strong-form inefficient?
It sounded for me like if we’d like to rank the forms descending it will look like as follows; but then how come would one encompass the later!!
1) strong-form efficient
2) Semi-strong efficient
3) Weak-form efficient
4) Weak-form inefficient (means slightly inefficient)
5) semi-strong inefficient
6) strong-form inefficient (worst-case)
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