The Weak Form of the Efficient Market Hypothesis States That

question 51

Multiple Choice

The weak form of the efficient market hypothesis states that

• A) Successive price changes are dependent.
• B) Successive price changes are independent.
• C) Successive price changes are biased.
• D) Successive price changes depend on trading volume.
• E) Properly specified trading rules are of value.

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Definitions:

360-Day Year

A financial convention that simplifies interest calculations by assuming a year has 360 days.

Note Payable

A financial obligation or loan documented by a written promissory note specifying repayment terms, interest rates, and maturity dates.

Overdue Account

A financial account that has not been paid by its due date, thereby incurring late fees or other penalties.

Current Liabilities

Short-term financial obligations due within one year or within the entity's operating cycle, whichever is longer, necessary for the ongoing operations of the business.