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:

Cash Budget

A forecast of cash inflows and outflows over a specific period, used to manage the company's cash flow and ensure financial stability.

Cash Disbursements

Financial transactions involving the outflow of cash, typically from an entity to vendors or employees, for expenses or purchases.

Beginning Cash Balance

The Beginning Cash Balance is the amount of cash that a company has at the start of a new accounting period, carried over from the end of the previous period.

Cash Disbursements

Money being paid out by a company during a period, including expenses, debt payments, and purchase of assets, usually tracked through a cash disbursements journal.