Which of the Following Is a Statement of Weak-Form Efficiency

question 23

Multiple Choice

Which of the following is a statement of weak-form efficiency?
I.If markets are efficient in the weak form, then it is impossible to make consistently superior profits by using trading rules based on past returns.
II.If markets are efficient in the weak form, then prices will adjust immediately to public information.
III.If markets are efficient in the weak form, then prices reflect all information.

• A)I only
• B)II only
• C)II and III only
• D)III only

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Definitions:

Variability

The degree to which data points in a dataset differ from each other and from their mean, indicating the dispersion or spread.

Scores

Quantitative values or measurements used to evaluate or assess someone or something's performance or status.

Negatively Skewed

A distribution of data where most values cluster at the high end with a tail extending to the low end, indicating that the median is greater than the mean.

Positively Skewed

A distribution of data where more values fall on the left-hand side of the distribution, making the tail on the right longer or fatter.