An efficient market hypothesis states all public information which is reflected in current market prices is classified as

The correct answer is: D. semi strong efficiency

An efficient market hypothesis states that all publicly available information is already reflected in the current market price of a security. This means that it is impossible to beat the market by using publicly available information.

There are three levels of market efficiency: weak form, semi strong form, and strong form.

• Weak form efficiency states that all past price information is already reflected in the current market price. This means that it is impossible to beat the market by using technical analysis, which is the study of past price movements.
• Semi strong form efficiency states that all publicly available information is already reflected in the current market price. This means that it is impossible to beat the market by using fundamental analysis, which is the study of a company’s financial statements and other publicly available information.
• Strong form efficiency states that all information, both public and private, is already reflected in the current market price. This means that it is impossible to beat the market by using any information, whether it is publicly available or not.

Semi strong efficiency is the most common type of market efficiency. It is the level of efficiency that most people assume when they talk about the efficient market hypothesis.