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U.S. market efficiency refers to the degree to which stock prices reflect all available information. According to the Efficient Market Hypothesis (EMH), stock prices adjust quickly to new information, making it difficult for investors to achieve consistently higher returns than the market average through stock picking or market timing. There are three forms of market efficiency: weak, semi-strong, and strong, each based on the type of information that is incorporated into prices. Overall, while many believe the U.S. markets are generally efficient, anomalies and behavioral factors can challenge this notion.

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2mo ago

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