The Weak Form of the Efficient Markets Theory Contends That

question 11

Multiple Choice

The weak form of the efficient markets theory contends that

• A) any publicly available information is useless in predicting future price movements.
• B) past price performance is useless in predicting future price movements.
• C) price movements are not random but follow a general trend over a period of time.
• D) past performance can help determine the general direction of future price movements.

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Definitions:

Furniture Department

A division within a store or company that specializes in selling furniture products.

Profit Margin

A financial metric that indicates the percentage of revenue that remains as profit after accounting for costs and expenses.

Investment Turnover

A measure of how efficiently an entity is using its investments to generate sales, typically calculated as sales divided by the average investment.

Return On Investment

A financial metric employed for assessing the profitability of an investment, calculated by dividing the investment's net profit by its initial cost.