A Weak Form of Market Efficiency Implies That

question 7

Multiple Choice

A weak form of market efficiency implies that:

• A) investors would be able to earn abnormal returns by using publicly available information.
• B) a security's price at a particular time fully reflects the information contained in its sequence of past prices.
• C) investors would be unable to earn abnormal returns by trading on private information.
• D) a security's price at a particular time fully reflects both publicly and privately available information.

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Definitions:

Employee Engagement

The degree to which employees are fully involved in their work and the strength of their commitment to their job and company.

Competitive Advantage

A unique attribute or ability a company has that enables it to outperform its competitors in the market.

Self-Evaluations

The process by which individuals assess their own job performance, strengths, and areas needing improvement, often part of performance management systems.