If the Weak Form of Market Efficiency Holds Then

question 50

Multiple Choice

If the weak form of market efficiency holds then:
I. Technical analysis is useless
II. Stock prices reflect information contained in past prices
III. Stock price changes follow a random walk

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

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Definitions:

Physiological Reactions

The body's automatic responses to internal or external stimuli, often involving changes in heart rate, respiration, perspiration, and other bodily functions.

Basic Emotion

Fundamental emotions that are universal across human cultures, such as happiness, sadness, fear, disgust, surprise, and anger, believed to be biologically innate.

Physiological Response

The body's automatic reactions to stimuli, influenced by both genetic and environmental factors.

Stimulation

The action of encouraging something to function, increase, or develop, usually through external input or factors.