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:

Abbreviations

Shortened forms of words or phrases used for convenience.

Debit

An entry on the left side of an account record, used to increase an asset or expense or decrease a liability, equity, or revenue.

Credit

An accounting entry that increases the balance of liabilities and equity accounts, and decreases the balance of an asset or expense account.

Rent Expense

The cost incurred for renting a property or equipment, recognized as an expense on the income statement.