Which of the Following Would Invalidate the Weak Form of the Efficient

question 23

Multiple Choice

Which of the following would invalidate the weak form of the efficient market hypothesis.

• A) Patterns in price behavior that consistently predict future price movements.
• B) Market analysis proves useful in discovering investment opportunities.
• C) Stocks of smaller firms consistently outperform larger firms.
• D) Shortly before she is arrested, a pharmaceutical company researcher makes a large profit on her company's stock by buying just before a new drug is approved by the Food and Drug Administration.

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Definitions:

Hair Follicles

Microscopic skin structures from which hair grows, providing anchorage and nourishment to the hair.

Dermis

The dermis is the thick layer of living tissue below the epidermis that forms the true skin, containing blood capillaries, nerve endings, sweat glands, hair follicles, and other structures.

Outermost Layer

Refers to the surface or external layer of an object or entity.

Epidermis

The epidermis is the outermost layer of the skin, providing a waterproof barrier and creating our skin tone.