The Weak Form of the Efficient-Market Hypothesis Asserts That

question 21

Multiple Choice

The weak form of the efficient-market hypothesis asserts that

• A) stock prices do not rapidly adjust to new information contained in past prices or past data.
• B) future changes in stock prices cannot be predicted from past prices.
• C) technicians cannot expect to outperform the market.
• D) stock prices do not rapidly adjust to new information contained in past prices or past data, and future changes in stock prices cannot be predicted from past prices.
• E) future changes in stock prices cannot be predicted from past prices, and technicians cannot expect to outperform the market.

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Definitions:

Human Relations

The study and practice of improving interactions among people, especially in a workplace or organizational setting.

Management

The act of coordinating and overseeing the operations of an organization or project, ensuring effective use of resources to meet objectives.

Social Barriers

Obstacles that prevent individuals or groups from accessing resources, opportunities, or social acceptance, often based on discrimination or bias.