Which of the Following Is a Statement of Weak Form

question 29

Multiple Choice

Which of the following is a statement of weak form efficiency?
I. If markets are efficient in the weak form, then it is impossible to make consistently superior profits by using trading rules based on past returns
II. If the markets are efficient in the weak form, then prices will adjust immediately to public information
III. If the markets are efficient in the weak form, then prices reflect all information

• A) I only
• B) II only
• C) II and III only
• D) III only

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Definitions:

Tax Increase

The act of raising the amount of taxes owed by individuals or businesses, often undertaken by governments seeking to boost revenue.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied at those prices.

Elastic Demand

A situation in economics where the quantity demanded of a good or service changes significantly as its price changes.

Many Substitutes

Refers to a situation where numerous alternative products or services are available for consumers, often leading to competitive markets.