If the Weak Form of the Efficient Market Hypothesis Holds

question 73

Multiple Choice

If the weak form of the efficient market hypothesis holds:

• A) share prices follow a random walk.
• B) share prices reflect all information contained in past prices.
• C) technical analysis is useless.
• D) all of the given answers are correct.

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Definitions:

Cooperatives

A business organization owned and operated by a group of individuals for their mutual benefit.

S Corporation

A special designation for a corporation that elects to be taxed as a pass-through entity, avoiding double taxation on the corporate income.

Franchisee

The seller of goods or services under a trade name or trademark in a franchise.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and usually voting rights in the company.