If Markets Were Weak Form Efficient, Which of the Following

question 45

Multiple Choice

If markets were weak form efficient, which of the following situations would NOT yield abnormal returns?

• A)Analyzing a company's earnings report
• B)Identifying a pattern in a company's stock price
• C)Obtaining insider information
• D)All of the above would yield abnormal returns

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Definitions:

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated as the company's total liabilities divided by its total assets.

Real Estate Investment Trusts

Companies that own, operate, or finance income-generating real estate, offering investors a way to invest in real estate through the purchase of publicly traded shares.

Portfolio Turnover

This term refers to the frequency at which assets within a portfolio are bought and sold by the manager, indicating trading activity level and potential costs.

Tax Liability

The total amount of tax that an individual or corporation is legally obligated to pay to an authority as the result of the occurrence of a taxable event.