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:

Dependent Variable

In scientific research, the variable being tested and measured, often to see the effect of changes in an independent variable.

Number of Collisions

A measure often used in physics and traffic safety to quantify the total occurrences of objects striking against each other within a specified period or area.

Placebo Effect

A phenomenon where a person experiences a physiological or psychological improvement after receiving a treatment with no therapeutic value.

Nonalcoholic Drink

A beverage that does not contain alcohol.