Weak-Form Efficiency Implies That Past Stock Returns

question 19

Multiple Choice

Weak-form efficiency implies that past stock returns

• A)form patterns that tend to repeat.
• B)are major inputs to investors for forming trading strategies.
• C)do not help to predict future returns.
• D)are difficult to explain.

---

Definitions:

Granite

A very hard, granular, crystalline, intrusive igneous rock consisting mainly of quartz, mica, and feldspar; commonly used in buildings for its strength and durability.

Nuclear Fusion

The combination, or fusion, of two nuclei to form a heavier nucleus, in the process releasing a large amount of energy.

Atoms

The basic units of matter, consisting of a nucleus surrounded by electrons.

Hydrogen

The simplest and most abundant element in the universe, consisting of just one proton and one electron, and a primary component in water and organic compounds.