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:

Private Consumptions

The spending by households on goods and services, excluding purchases of new housing but including healthcare, education, and entertainment.

Majority Vote

A decision-making rule where the option that receives more than half of the votes is chosen.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by many people simultaneously without depletion.

Pareto Optimal

A scenario in resource distribution where it's impossible to benefit one individual through reallocation without causing harm to another individual.