What Does Weak Form Efficiency Imply

question 49

Multiple Choice

What does weak form efficiency imply?

• A)Portfolio diversification is ineffective as all prices are interrelated.
• B)Past price movement is unrelated to the movement of future prices.
• C)Abnormal returns will disappear within a trading day.
• D)Price patterns that existed in the past will reappear in the future.
• E)Investors cannot earn abnormal profits based on any publicly available information.

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Definitions:

Transportation Costs

Expenses associated with the movement of goods or individuals from one location to another.

Selling Price

The amount of money for which a product or service is offered for sale to the public.

Common-Carrier Delivery Contract

A type of contract in which purchased goods are delivered to the buyer via an independent contractor, such as a trucking line.

UPS

A global shipping and logistics company known for its package delivery services.