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:

Higher Amount

A term that refers to a value that is greater when compared with another quantity or measure.

Specific Identification

A method of inventory valuation that tracks the actual cost of each specific item in inventory.

Grocery Store

A grocery store is a retail establishment that sells food and other household goods.