According to Theory,studying Historical Stock Price Movements to Identify Mispriced

question 13

Multiple Choice

According to theory,studying historical stock price movements to identify mispriced stocks:

• A)is effective as long as the market is only semistrong form efficient.
• B)is effective provided the market is only weak form efficient.
• C)is ineffective even when the market is only weak form efficient.
• D)becomes ineffective as soon as the market gains semistrong form efficiency.
• E)is ineffective only in strong form efficient markets.

---

Definitions:

ATP

Adenosine triphosphate, a high-energy molecule used as the main energy currency in the cell for metabolic processes.

ADP

Adenosine diphosphate, a molecule involved in energy transfer within cells.

Fermentation

A metabolic process that converts sugar to acids, gases, or alcohol in the absence of oxygen.

Gravity

A natural phenomenon by which all things with mass or energy are brought toward one another, including objects ranging from subatomic particles to planets and stars.