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:

Human Life

The existence, characteristics, and experience of being a person; often considered with respect to the moral, social, and philosophical aspects.

Cost-Benefit Analysis

An economic evaluation method that compares the costs and benefits of a project or decision to determine its feasibility or compare alternatives.

Free-Rider Problem

A situation in economics where individuals consume more than their fair share of a public resource, or shoulder less of the cost of its provision, leading to underproduction or depletion of the resource.

Aristotle

An ancient Greek philosopher and scientist, one of the greatest intellectual figures of Western history.