Carolyn Briles holds a . in English and Mathematics Education from Wichita State University and a Master’s Degree in Mathematics from Kansas State University. As a grown up, she taught mathematics at both the university and high school levels, and also worked as an engineer and intelligence analyst and Los Alamos National Laboratory. As a child, she read Little House books every chance she could and dreamed of growing up to be Laura Ingalls Wilder. She currently lives in Leesburg, VA, where she writes fiction and devotionals for children and teens.
In semi-strong-form efficiency, it is implied that share prices adjust to publicly available new information very rapidly and in an unbiased fashion, such that no excess returns can be earned by trading on that information. Semi-strong-form efficiency implies that neither fundamental analysis nor technical analysis techniques will be able to reliably produce excess returns. To test for semi-strong-form efficiency, the adjustments to previously unknown news must be of a reasonable size and must be instantaneous. To test for this, consistent upward or downward adjustments after the initial change must be looked for. If there are any such adjustments it would suggest that investors had interpreted the information in a biased fashion and hence in an inefficient manner.