Weak Form Efficiency Implies That Past Stock Price(s)

question 20

Multiple Choice

Weak form efficiency implies that past stock price(s)

• A) patterns tend to repeat itself in the future
• B) are major inputs to the investors for forming trading strategies
• C) do not matter
• D) none of the above

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Definitions:

Market Price

The price at which a good or service is bought and sold in a competitive marketplace, determined by supply and demand.

Product Differentiation

The technique of making a product or service stand out from others in the industry to boost its desirability to a designated target market.

Americans

Refers to the citizens or inhabitants of the United States of America.

Monopolistic Competitor

A market structure where many companies sell products that are similar but not identical, allowing for competition based on factors other than price.