discuss and explain them, providing your opinion on strong form EMH and whether it is

The Efficient Market Hypothesis (EMH) is a theory in financial economics that states that asset prices fully reflect all available information. The EMH exists in various degrees: weak, semi-strong, and strong, which refer to the inclusion of non-public information in the market price.

The Strong Form of EMH asserts that all information, public and private, is fully reflected in asset prices. This means that even insider or privileged information cannot give an investor an edge over the market. In other words, no one has access to information that could provide them with consistent abnormal returns.

However, there are several criticisms of the strong form EMH. Firstly, there are numerous instances where individuals, particularly corporate insiders, seem to make abnormal returns from their trades, suggesting that they are trading on private information not yet reflected in the market price. Secondly, behavioral finance studies have shown that investors often behave irrationally, which can lead to mispricings in the market.

In my opinion, while the strong form EMH is a useful theoretical concept, it does not fully hold in reality. There are too many instances of market anomalies and irrational investor behavior that contradict the strong form EMH. Furthermore, the existence of successful active investment strategies suggests that it is possible to consistently achieve abnormal returns, contradicting the strong form EMH. Therefore, while markets may be efficient to a large extent, they are not perfectly efficient as suggested by the strong form EMH.