Which Form of the Efficient Market Hypothesis Implies That Security

question 24

Multiple Choice

Which form of the efficient market hypothesis implies that security prices reflect only information contained in past prices?

• A)Weak form
• B)Semistrong form
• C)Strong form
• D)Hard form
• E)Past form

---

Definitions:

Luxury Goods

High-end products and services that are perceived to be more prestigious and are usually purchased by individuals with more disposable income.

Price Elastic

Refers to the degree to which the quantity demanded or supplied of a good or service changes in response to a change in its price.

Necessities

Basic needs essential for maintaining life, such as food, water, shelter, and clothing, which take precedence over other types of spending.

Elasticity Coefficient

A measure used to show the responsiveness of the quantity demanded or supplied to a change in one of its determinants, like price or income.