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.

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Definitions:

Behavioral Entrainment

The synchronization of behaviors or actions among individuals in a group, often leading to increased harmony and efficiency.

Inclusionary Status

The degree to which individuals feel valued, respected, and supported within a group or organization.

Unethical Behaviors

Actions that violate moral principles or professional standards, potentially harming individuals or the organization.

Commitment Phase

A stage in a project or process where parties involved confirm their dedication and willingness to see through the objectives and tasks.