The "Filter Rule" Is a Technical Analysis Tool That Says

question 12

Multiple Choice

The "filter rule" is a technical analysis tool that says, "Wait until a stock increases by a certain percentage (i.e., the filter) after it has hit a recent all-time low and then buy the stock. Wait
Until it decreases by that percentage after it has hit a recent all-time high to sell the stock."
Proponents of the rule indicate that abnormal profits can be made by following it. If this is the
Case, then

• A)markets are semistrong efficient.
• B)markets are weakly efficient.
• C)markets are strongly efficient.
• D)None of the above. Markets are not even weakly efficient if this rule works.

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Definitions:

Three Priority Levels

A system of classification that ranks items or tasks according to their urgency or importance into three categories.

Alarms

Signals or notifications designed to alert users about a specific condition or event, often used in security systems, smartphones, and applications.

Flags

Visual markers used in various applications to highlight or categorize items for easy identification.

Due Date

The specified date by which a task, assignment, or payment is to be completed or submitted.