The Weak Form of the Efficient Market Hypothesis Asserts That

question 43

Multiple Choice

The weak form of the efficient market hypothesis asserts that:

• A) the change in future share prices cannot be predicted from past share prices.
• B) share prices adjust rapidly to new information contained in past prices or past data.
• C) technical analysts cannot be expected to outperform the market.
• D) all of the given answers are correct.

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Definitions:

Linear Programming

A mathematical technique used to achieve the best outcome (such as maximum profit or lowest cost) in a model with linear relationships.

Regular Employment

Employment characterized by a long-term contractual relationship between the employee and employer, often including benefits and job security.

Holding Costs

Expenses related to storing unsold goods or materials, including warehousing, insurance, and deterioration, a component of carrying costs.

Overtime

Additional time worked beyond the standard hours, often compensated at a higher pay rate.