Which of the Following Statements Is (Are)true If the Strong-Form

question 7

Multiple Choice

Which of the following statements is (are) true if the strong-form efficient market hypothesis holds?
I.Analysts can easily forecast stock price changes.
II.Financial markets are irrational.
III.Stock returns follow a particular pattern.
IV.Stock prices reflect all available information.

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

---

Definitions:

Common Size

A financial analysis technique that expresses each line item in a financial statement as a percentage of a base figure, aiding in comparison across different financial periods or companies.

Financial Statements

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheet, income statement, and cash flow statement.

Stakeholders

Individuals or groups who have an interest in the success or performance of a company, including employees, customers, investors, suppliers, and the community.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.