Research on the Weak Form of the Efficient Market Hypothesis

question 11

Multiple Choice

Research on the weak form of the efficient market hypothesis suggests that:

• A)stock prices are independent over time.
• B)past trends cannot be used to predict the future.
• C)charting and technical analysis have limited value.
• D)More than one of the above

---

Definitions:

Debit Balances

Accounts in a company's ledger that have a positive balance in a debit account or a negative balance in a credit account, typically assets and expenses.

Liability

A financial obligation or debt that a company owes to another entity.

Asset

Resources owned or controlled by a business or an individual that are expected to produce economic value or future benefits.

Dividends Account

An account in a company's financial records where dividend payments are recorded, reflecting distribution of profits to shareholders.