You are the manager of a large USbased MNC A member of the C

You are the manager of a large U.S.-based MNC. A member of the Chilean government, a good friend of yours, has just contacted you to inform you that the Chilean central bank will raise interest rates next week. If you cannot use this information to improve your forecast of the Chilean peso, then the foreig?n exchange market for the Chilean peso is probably O a. Strong-form O b. Weak-form efficient C. Semistrong-form O d. All of these choices are correct.

Solution

Answer will strong form because information is available in both public and private thats why there is not much impact of the insider information on the forecast.