An Investor Discovers That Predictions About Weather Patterns Published Years

question 65

Multiple Choice

An investor discovers that predictions about weather patterns published years in advance and found in the Farmer's Almanac are amazingly accurate. In fact,these predictions enable the investor to predict the health of the farm economy and therefore certain security prices. This finding is a violation of the:

• A) moderate form of the efficient market hypothesis.
• B) semistrong form of the efficient market hypothesis.
• C) strong form of the efficient market hypothesis.
• D) weak form of the efficient market hypothesis.
• E) None of these.

---

Definitions:

Default

Default refers to the failure to repay a loan according to the terms agreed to in the promissory note.