According to FAMA, he introduced in market efficiency place three typeof hypothesis, weak form efficiency, semi strong form efficiency andstrong form efficiency.
this theory weak from efficiency indicated futureprice cannot be predicted by analyzing prices from the past. Thehistorical data cant using by investment earned by long run excess. Alsotechnical investigation cannot adjustable to risen excess returns. Insome way fundamental study will provide excess returns. When EMH dopredict that all price movement is random, many studies done on marketpropensity. For the stock market to tender over time periods of week or longer.
In this efficiency share price increasinglyvery rapidly and new information spread quickly. Semi strong efficiencyadjustable to technical study and fundamental study will able toconsistently to make excess returns. To test of semi strong efficiencyreliable upward and downward adjustments and recently changes findout and look after it. This efficiency would advice to investors hadinterpreted the information in a biased fashion and therefore in anincompetent manner.
In public and private can¶t earn excess returnswhen share prices reflect all information. Strong form efficiency isimpossible when private firm transfer in to public sector. In the term of strong form efficiency, a market requirement to survive where investorscannot constantly earn excess returns over a long period of time.